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1 Smart Stock to Buy Right Now

newsfeedback@fool.com (Neil Patel)
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⚡ Quantum Brief
Alphabet’s stock surged nearly 200% in five years, hitting a $4.1 trillion market cap in April 2026, driven by AI advancements and dominant ad revenue from Google Search and YouTube. Google Cloud’s AI integration fuels growth, with 75% of customers using its vertically optimized AI tools, backed by a $240 billion order backlog and rising profitability. AI Max and other AI-driven ad tools enhance targeting and monetization, reinforcing Alphabet’s leadership as global AI infrastructure spending hits $3–4 trillion annually by 2030. Waymo, Alphabet’s autonomous driving unit, leads with 500,000 weekly rides, showcasing its high-risk, high-reward innovation strategy funded by $73 billion in 2025 free cash flow. Despite a 31.3x P/E ratio—above its five-year average—Alphabet’s 725% net income growth since 2015 justifies its premium as AI reshapes the global economy.
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By Neil Patel – Apr 19, 2026 at 3:30AM ESTKey PointsTwo important platforms, both of which possess powerful network effects, drive persistent gains in advertising revenue. Advancing artificial intelligence has been a top priority for this business, with notable success showing up in the booming cloud segment. Even though this leading internet company's share price has almost tripled in five years, earnings growth can power higher returns in the future. Regardless of what you believe about the long-term implications for artificial intelligence (AI), the amount of money pouring into the industry is hard to ignore. Nvidia CEO Jensen Huang said previously that by the end of this decade, there will be $3 trillion to $4 trillion in annual spending on AI-related infrastructure. All signs point to AI becoming a bigger part of the global economic backdrop in the future. Here's one smart stock to buy right now that's in a wonderful position to continue winning. Image source: The Motley Fool. There are so many reasons to like this dominant internet enterprise The company that investors might view as a no-brainer opportunity today is "Magnificent Seven" constituent Alphabet (GOOGL +1.71%) (GOOG +1.99%). In the past five years, its share price has rocketed almost 200% higher (as of April 17). There are plenty of reasons to appreciate this great business. Alphabet's dominant position in the digital advertising market is enviable, particularly as it relates to the flagship Google Search platform, as well as the leading video entertainment service YouTube. They both possess network effects. And combined, these two segments raked in $74.5 billion in ad sales in Q4 2025, with both growing at healthy rates on a yearly basis. When it comes to AI, Alphabet has basically been all-in for a decade now. Its AI capabilities continue to improve the functionality of all its internet platforms. And advertising customers benefit from new features, like AI Max, that can boost audience targeting and monetization.

But Google Cloud is where AI is showing up the most. This burgeoning cloud computing platform, which is dramatically improving its profitability, has a monster backlog of $240 billion. "Nearly 75% of Google Cloud customers have used our vertically optimized AI, from chips, to models, to AI platforms, and enterprise AI agents," CEO Sundar Pichai said on the Q4 2025 earnings call. With free cash flow exceeding $73 billion in 2025, Alphabet is in a unique position to direct capital to high-risk/high-reward projects. Waymo is one of these Other Bets. With more than 500,000 weekly rides, the autonomous driving enterprise is leading the pack in this new technological wave. ExpandNASDAQ: GOOGLAlphabetToday's Change(1.71%) $5.74Current Price$341.76Key Data PointsMarket Cap$4.1TDay's Range$336.24 - $342.3152wk Range$146.10 - $349.00Volume1MAvg Vol33MGross Margin59.68%Dividend Yield0.25% Alphabet's valuation isn't too demanding today In the past 12 months, this internet stock has soared 120%, supporting Alphabet's gargantuan market cap of $4.1 trillion today. Even at this scale, the business presents investors with a smart buying opportunity. Examine the valuation. Shares trade at 31.3 times 2025 earnings. This is a premium to the trailing-five-year average of 24.6. I agree that this doesn't resemble a bargain. But the company's net income rose 725% between 2015 and 2025. And no one doubts that Alphabet is one of the world's truly elite businesses. As AI starts to infiltrate the global economy, there aren't many companies better positioned.Read NextApr 18, 2026 •By Motley Fool StaffAn Alphabet Stock Deep DiveApr 17, 2026 •By Stefon WaltersThis Big Tech Stock Has a Lot to Gain From a SpaceX IPOApr 17, 2026 •By Matt Frankel, CFPS&P 500 Explained: How the Index Works and How to Invest in ItApr 17, 2026 •By Matt Frankel, CFPBest Stocks to Buy Now: Our Buy-and-Hold Picks for April 2026Apr 17, 2026 •By Rachel WarrenBest Blue Chip ETFs to Buy in 2026Apr 16, 2026 •By Daniel FoelberIs Energy the Real AI Bottleneck?

What Investors Need to KnowAbout 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: GOOG$339.40(+1.99%)+$6.63AlphabetNASDAQ: GOOGL$341.76(+1.71%)+$5.74*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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