Prediction: Alphabet Will Soar Over the Next 5 Years. Here's 1 Reason Why.
Key Points
Alphabet's ability to grow earnings at a double-digit pace will drive the share price higher over time.
Management is focused on leveraging AI capabilities to support customers and users, which will help increase ad sales.
- 10 stocks we like better than Alphabet ›
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is ready to close out 2025 with a bang. The dominant internet business has seen its shares skyrocket 62% so far this year (as of Dec. 16), thanks to robust financial results and a leading position in the artificial intelligence (AI) race.
This top tech stock has historically been a great investment. And I predict that it will soar over the next five years. Here's one reason why.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Alphabet.
Higher earnings can propel shares through the rest of the decade
Benjamin Graham famously suggested that over the long term, the market is a weighing machine, as fundamentals run the show. Along the same vein, Alphabet shares will be lifted by much higher profits in 2030.
In the past five years, the company's net income climbed at a compound annual rate of 26%. Wall Street consensus estimates call for earnings per share to rise at a yearly clip of 17% between 2024 and 2027. I expect double-digit gains to continue past that forecast period.
Therefore, it wouldn't be surprising at all to see Alphabet's stock price double by the end of the decade.
Digital ad growth will be a key factor
Alphabet's bread and butter continues to be its digital ad efforts, representing almost 75% of its revenue base. With the business leveraging AI tools not only to improve customers' ad targeting capabilities, but to bolster its various user-facing products and services, Alphabet is in a favorable position.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $506,935!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,514!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 19, 2025.
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.
Recommended Articles
