12 Best Long-Term Growth Stocks to Buy Now

3. Alphabet Inc. (NASDAQ:GOOG)

5-Year Revenue Growth: 16.68%

Number of Hedge Funds: 202

Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube. It is the largest digital advertising company in the world, with the search engine Google holding approximately 90% global market share. In the US alone, Google has more than 75% market share for desktop and 95% for mobile searches, making it one of the most significant revenue drivers for the company.

Alphabet Inc. (NASDAQ:GOOG) also operates a successful cloud business, an autonomous vehicle unit called Waymo, and even sells devices. Fiscal Q4 2024 showed a 12% growth in overall revenue for the company, along with a 12.5% growth in search revenue. YouTube grew by 13.8%, while revenue from Google Cloud rose by around 30% to $12 billion. Analysts are bullish on the stock, and its median price target of $187.74 implies an upside of 11.86%.

Merion Road Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOG): We have held GOOG for a long time (since 2018) on the basis of its immense business quality paired with an undemanding valuation, improving treatment of minority shareholders, and multiple options for value creation. Recently we have seen Alphabet bashed for losing the AI race to now heralded for its progress. I remain excited about their prospects with several near-term, mid-term, and long-term tailwinds. Near-term, Google Cloud continues its rapid growth and their latest large language model, Gemini 2.0, appears to have made significant progress to better serve consumer needs and improve GOOG’s other product offerings. Mid-term, Waymo is on the cusp of becoming a real value driver for the company; there are abundant articles discussing Waymo stealing share from the ride-share economy and launching in new geographies. Long-term, GOOG’s recently announced quantum computing chip positions it well for a future (many, many years away) where computing process are fundamentally different than today. All of these options are embedded in a company that already has an established and dominant earnings stream.”