Should You Invest $1,000 in Alphabet Right Now?
Key Points
Alphabet shares trade at a forward P/E ratio of 28, which isn’t expensive given the quality of the business.
With new ways to monetize Alphabet's AI user base, ad revenue will keep climbing and lifting profits.
- 10 stocks we like better than Alphabet ›
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has had an unbelievable year. And investors should have zero complaints. As of Dec. 12, shares have climbed 63% in 2025. There is some serious positive momentum working in the company's favor.
After such a monumental gain and a $3.7 trillion market cap, should you invest $1,000 in this top tech stock right now?
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Image source: Alphabet.
Alphabet's valuation looks reasonable
Investors would be wise to consider adding this dominant internet business to their portfolios. Valuation is one of the main reasons why. Shares currently trade at a forward price-to-earnings ratio of 28, a multiple that is justified given Alphabet's economic moat, history of innovation, and huge free cash flow.
The stock will continue winning
The stock has crushed the S&P 500 index in the past five years. And it's poised to keep this streak going between now and 2030.
That confidence stems from Alphabet's ability to find new avenues to make money. The company is planning to introduce ads to its extremely popular Gemini app next year, which has 650 million monthly active users. This is a smart way for the business to monetize its user base that opts to use the free service instead of a paid tier.
Alphabet generated $74 billion of ad revenue in the third quarter, a figure that should continue marching higher and lifting profits in the process.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
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