Could Buying Alphabet Today Set You Up for Life?

Core Insights - Alphabet has demonstrated impressive growth with a 20.84% annual compound growth rate over the past 15 years, significantly outperforming the S&P 500 index [1] - The company currently has a market capitalization of $3.4 trillion, raising questions about its ability to sustain high performance for new investors [1] Growth Avenues - Alphabet's primary business is its search engine, Google, which generates substantial advertising revenue and maintains a strong market position due to deep network effects and brand strength [1][2] - The company is adapting to challenges from AI chatbots, ensuring that its search business remains a key long-term growth area [2] - Alphabet is also making significant strides in AI and cloud computing, holding the third-largest share in the rapidly growing cloud market, benefiting from high switching costs [2] - The company's streaming services, particularly through YouTube, contribute to its growth via subscription revenue and ad sales, representing another long-term opportunity [4] - Additionally, Alphabet is involved in autonomous vehicle technology, which is gradually gaining traction in major U.S. cities, further diversifying its growth potential [4] Financial Metrics - Alphabet's current stock price is $279.04, with a market cap of $3,365 billion [3][4] - The stock has a gross margin of 59.18% and does not offer a dividend yield [4]