Should You Invest $1,000 in Alphabet Right Now?
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By Neil Patel – Dec 15, 2025 at 11:36PM ESTKey PointsAlphabet shares trade at a forward P/E ratio of 28, which isn’t expensive given the quality of the business.With new ways to monetize Alphabet's AI user base, ad revenue will keep climbing and lifting profits. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: GOOGLAlphabetMarket Cap$3.7TToday's Changeangle-down(-0.34%) $1.06Current Price$308.23Price as of December 15, 2025 at 3:58 PM ETThis stock has surged 63% higher in 2025 and now sports a $3.7 trillion market cap.Alphabet (GOOGL 0.34%) (GOOG 0.39%) has had an unbelievable year. And investors should have zero complaints. As of Dec. 12, shares have climbed 63% in 2025. There is some serious positive momentum working in the company's favor. After such a monumental gain and a $3.7 trillion market cap, should you invest $1,000 in this top tech stock right now? Image source: Alphabet. Alphabet's valuation looks reasonable Investors would be wise to consider adding this dominant internet business to their portfolios. Valuation is one of the main reasons why. Shares currently trade at a forward price-to-earnings ratio of 28, a multiple that is justified given Alphabet's economic moat, history of innovation, and huge free cash flow. ExpandNASDAQ: GOOGLAlphabetToday's Change(-0.34%) $-1.06Current Price$308.23Key Data PointsMarket Cap$3.7TDay's Range$304.88 - $311.4152wk Range$140.53 - $328.83Volume896KAvg Vol36MGross Margin59.18%Dividend Yield0.27% The stock will continue winning The stock has crushed the S&P 500 index in the past five years. And it's poised to keep this streak going between now and 2030. That confidence stems from Alphabet's ability to find new avenues to make money. The company is planning to introduce ads to its extremely popular Gemini app next year, which has 650 million monthly active users. This is a smart way for the business to monetize its user base that opts to use the free service instead of a paid tier. Advertisement Alphabet generated $74 billion of ad revenue in the third quarter, a figure that should continue marching higher and lifting profits in the process.About 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.TMFNeilPatelRead NextDec 15, 2025 •By Marc GubertiShould You Buy This "Magnificent Seven" Stock Before 2026?Dec 15, 2025 •By Keithen DruryThe Best Stocks to Buy With $1,000 Right NowDec 15, 2025 •By James BrumleyAlphabet Is Preparing Its Death Blow to Cable TV as We Know ItDec 15, 2025 •By Keithen DruryGot $5,000? 3 Tech Stocks to Buy and Hold for the Long TermDec 14, 2025 •By Will HealyBetter (Almost) $4 Trillion AI Stock to Buy Now: Microsoft or AlphabetDec 14, 2025 •By Prosper Junior BakinyWhat Is the Best Tech Stock to Hold for the Next 10 Years?