Alphabet's current valuation looks attractive.
The business is a leader in artificial intelligence.
This is a high-quality company with a wide moat and strong profits.
Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) ascent to becoming a $3 trillion behemoth has undoubtedly made many long-term investors rich in the past couple of decades. The gains aren't letting up; shares have surged 45% just in the past three months (as of Sept. 26).
This top tech stock now trades at an all-time high. Here's one reason why you should still buy Alphabet shares with $10,000 in 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Image source: Alphabet.
Investors shouldn't overthink the situation. The market is presenting investors with the opportunity to buy one of the world's elite businesses at a reasonable valuation. The stock currently trades at a forward price-to-earnings ratio of 23.3. For comparison's sake, this is slightly more expensive than the S&P 500 index's multiple of 21.8.
Alphabet is a high-quality company, so the premium to the overall market is more than justified.
It has a leadership position in the artificial intelligence (AI) race. Alphabet is involved in AI research, while also developing its own AI chips, operating a thriving cloud computing platform that serves AI tools and services, and running insanely popular AI-powered user-facing apps.
The business has a wide economic moat, underscored by network effects and its ability to collect and leverage data. And it's incredibly profitable, posting a stellar operating margin of 32% in the second quarter (ended June 30).
Investors should seriously consider buying $10,000 worth of Alphabet stock in 2025. It should be a lucrative bet over the next five years.
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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.