Alphabet’s market cap recently surpassed $4 trillion. Even at its current size, this tech giant remains a quality company to have in your portfolio.
The tech sector is home to several of the largest publicly traded companies. One of the most successful is Alphabet (GOOG 1.01%)(GOOGL 0.96%), which recently reached a market cap of $4 trillion.
Alphabet has already been on an impressive run. Shares are up 75% over the last year (as of Jan. 13). While investors may be concerned about how much growth it has left, I believe Alphabet will continue to beat the market over the next decade. Here’s why.
Image source: Alphabet.
Dominant core businesses and AI growth
Alphabet’s main source of revenue is Google Search, and it also makes money from YouTube ads, Google subscriptions, platforms, devices, and Google Cloud. These all delivered double-digit growth in the third quarter of 2025, when Alphabet reported $102.3 billion in total revenue, a 16% year-over-year increase.
It generated $24.5 billion in free cash flow (FCF) that quarter and finished with $98.5 billion in cash, cash equivalents, and marketable securities. Alphabet’s core businesses bring in enough money to maintain a strong balance sheet, while also being able to afford the capital expenditures needed to compete in artificial intelligence (AI).
Today’s Change
(-0.96%) $-3.20
Current Price
$329.58
Key Data Points
Market Cap
$4.0T
Day’s Range
$327.70 – $334.50
52wk Range
$140.53 – $340.49
Volume
618K
Avg Vol
36M
Gross Margin
59.18%
Dividend Yield
0.25%
Alphabet’s full-stack approach to AI gives it a tremendous advantage in that area. It designs chips, provides AI infrastructure, offers development platforms, and has consumer AI applications that it’s integrating into its other products, including Search, Gmail, and YouTube. This approach provides additional sources of revenue and ensures that Alphabet isn’t reliant on other AI companies.
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Between its profitable businesses and its growing success with AI, Alphabet looks like an excellent long-term investment. Despite the recent rise in share price, it isn’t prohibitively expensive, either. The tech giant currently trades at 30 times forward earnings, which makes it one of the cheaper members of the Magnificent Seven.
Lyle Daly has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.