1 monster stock that needs to be kept for the next 5 years

With billions of users on very popular internet platforms, this business has created long -term competitive advantages.
The management team is fully focused on AI, with the growing financial investment that supports this strategy.
Investors will be pleased to know that stock trade is lower than changing the market value.
10 shares we like more than alphabet ›

The best investors know that high quality companies should depend on the long distance. This usually means a smart idea to have a horizon of time that covers a few years, not to try to find out what to do with your money in the next few weeks or months. The long -term perspective allows you to reconcile your magic, which helps to generate wealth.

In view of this perspective, investors can look for historic winners to find potential future opportunities. Here’s one monster stock investors should to buy and hold for the next five years. Its shares have increased by 499% in the last decade (August 15) by 499%.

Image Source: Getty Images.

Stock investors should buy and hold for five years Alphabet (Nasdaq: googl) (Nasdaq: goog); This dominant online company includes Google Search, YouTube, Waymo, Chrome, Android, Google Cloud and many other features. In the second quarter, it has billions of consumers and earned $ 96 billion.

Thanks to all popular products and services, Alfabet has many sustainable competitive advantages that make up a wide range Economic ditch; This can collect a huge amount of data that helps improve the quality of his suggestions. Network effects of basics platforms such as Search and YouTube can be better with more users and over time. And the Google brand is extremely powerful.

There are cost advantages while playing. For example, Google Cloud can use its investment in expensive infrastructure by increasing income, resulting in increased profitability. And this segment is useful Switching costswhen customers create workflows and integrations that make it difficult to leave.

The alphabet is already a Leader of artificial intelligence (S). While investors are still worried about AI’s search for business impact, it is worth noting that the AI review feature now has 2 billion active users. This search option also gets money at the same speed as a traditional search. Business also develops its AI models on the Gemini. And he produces his AI chips called Tensor processing units.

The alphabet can invest aggressively in AI initiatives only for its financial force. Other companies want them to be so lucky. Business earned $ 28 billion in the last quarter of a cash in cash translated to a Net margin of 29%. And from June 30th. The Alphabet had $ 95 billion in cash, cash equivalents and securities for sale, with significantly more than $ 24 billion long -term debt.

This allows the leadership team to spend as there is no tomorrow. The alphabet now plans to have $ 85 billion in capital costs this year compared to the previous purpose – $ 75 billion just three months ago. This number is expected to increase in 2026.

Only over the last five years, alphabetical shares increased by 174%. That profit was driven Diluted profits per share (EPS), which has grown since 2020. By 2025 I and I do not believe that investors should expect a similar increase in stock prices from now to 2030, which still seems a great opportunity to buy.

Shares trade in 22 prices and profit ratio. Not only does this make the alphabet the cheapest of all the “amazing seven” positions, but it is a meaningful discount in general S&P 500 arrow; I think the company should be able to announce double -digit EPS growth in the near future, and the perspectives of the evaluation have increased upside down.

Today, investors would have no hesitation to find out alphabetical shares. Not surprisingly, in the next five years, this monster reserves are twice as high.

Before buying alphabetical reserves, consider this:

Motley Fool Stock Advisor A team of analysts just found what they think is 10 best stocks To buy investors now … and the alphabet was not one of them. 10 stocks that reduced the incision can return the monster in the coming years.

Consider when Netflix This list consisted of 2004. December 17th … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 668 155!* Or when Nvidia Made this list in 2005. April 15 … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 1,106,071!*

Now it is worth mentioning Share advisor The average return is 1 070%-S&P 500, compared to 184 percent. Share advisor;

See. 10 stocks »

*The stock advisor returns from 2025. August 13

Neil Patel has no position in any of the above shares. Motley fool is a position and recommends the alphabet. The Motley fool has a disclosure policy.

1 Monster Stock, which needs to be kept for the next 5 years

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