Prediction: Alphabet Stock Will Soar Over the Next 10 Years. Here's 1 Reason Why.

Core Insights - Alphabet (NASDAQ: GOOGL) has a market capitalization of $3.4 trillion and has seen its shares increase by 653% over the past decade, indicating strong investor returns [1][3] - The company is expected to continue its earnings growth, with a projected compound annual growth rate of 16.7% for earnings per share from 2024 to 2027 [4][6] - Google Cloud is emerging as a significant growth driver, with year-over-year revenue growth of 33% and operating income growth of 89% in Q3, fueled by demand for AI tools [5][6] Earnings Growth - Long-term stock price increases are primarily driven by earnings growth, and Alphabet has a strong track record in this area [3] - The company is anticipated to maintain double-digit earnings growth beyond the current forecast period [4] Business Segments - Advertising remains a crucial component of Alphabet's revenue, accounting for 73% of total sales in Q3 [5] - The Google Cloud segment is rapidly growing and improving profitability, which is expected to positively impact Alphabet's stock price over the next decade [6] Investment Considerations - Despite Alphabet's strong growth prospects, it was not included in a recent list of the top 10 stocks recommended by The Motley Fool Stock Advisor, which suggests that there may be other investment opportunities that could yield higher returns [7][8]