Prediction: Alphabet Will Soar Over the Next 5 Years. Here's 1 Reason Why.

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By Neil Patel – Dec 19, 2025 at 12:30PM ESTKey PointsAlphabet's ability to grow earnings at a double-digit pace will drive the share price higher over time. Management is focused on leveraging AI capabilities to support customers and users, which will help increase ad sales. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: GOOGLAlphabetMarket Cap$3.6TToday's Changeangle-down(0.73%) $2.22Current Price$304.68Price as of December 19, 2025 at 1:13 PM ETThis top AI stock is having a phenomenal year in 2025, up 62%.Alphabet (GOOGL +0.73%) (GOOG +0.75%) is ready to close out 2025 with a bang. The dominant internet business has seen its shares skyrocket 62% so far this year (as of Dec. 16), thanks to robust financial results and a leading position in the artificial intelligence (AI) race. This top tech stock has historically been a great investment. And I predict that it will soar over the next five years. Here's one reason why. Image source: Alphabet. Higher earnings can propel shares through the rest of the decade Benjamin Graham famously suggested that over the long term, the market is a weighing machine, as fundamentals run the show. Along the same vein, Alphabet shares will be lifted by much higher profits in 2030. In the past five years, the company's net income climbed at a compound annual rate of 26%. Wall Street consensus estimates call for earnings per share to rise at a yearly clip of 17% between 2024 and 2027. I expect double-digit gains to continue past that forecast period. Therefore, it wouldn't be surprising at all to see Alphabet's stock price double by the end of the decade.Advertisement ExpandNASDAQ: GOOGLAlphabetToday's Change(0.73%) $2.22Current Price$304.68Key Data PointsMarket Cap$3.6TDay's Range$300.97 - $306.1852wk Range$140.53 - $328.83Volume571KAvg Vol37MGross Margin59.18%Dividend Yield0.27% Digital ad growth will be a key factor Alphabet's bread and butter continues to be its digital ad efforts, representing almost 75% of its revenue base. With the business leveraging AI tools not only to improve customers' ad targeting capabilities, but to bolster its various user-facing products and services, Alphabet is in a favorable position. Read NextDec 19, 2025 •By Keithen DruryIs Warren Buffett's Last Purchase at Berkshire Hathaway a Top Stock Pick for 2026?Dec 19, 2025 •By Adam SpataccoBillionaire Philippe Laffont Is Selling Nvidia and Buying This Other Magnificent Chip Stock InsteadDec 18, 2025 •By Patrick SandersIf I Could Only Buy and Hold a Single Stock, This Would Be ItDec 18, 2025 •By Geoffrey SeilerAlphabet Has Another Hidden Asset, and Its Value Is About to Go to the Moon in 2026Dec 17, 2025 •By Will HealyPrediction: This AI Stock Could Be the Next $4 Trillion Company in 2026Dec 17, 2025 •By Lee Samaha2 AI Stocks to Buy and 1 to AvoidAbout the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedAlphabetNASDAQ: GOOGL$304.68 (+0.01%) $+2.22AlphabetNASDAQ: GOOG$306.01 (+0.01%) $+2.26*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement
