5 Reasons to Buy Alphabet (Google) Stock Like There's No Tomorrow

For some reason, Wall Street analysts aren't excited about Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). The consensus 12-month price target for the stock reflects a minuscule potential upside.

I don't get it. Alphabet has been the most magnificent of the so-called "Magnificent Seven" stocks over the last 12 months. All the ingredients for continued momentum appear to be in place.

Should investors believe Wall Street's uninspiring price target for Alphabet? I don't think so. Here are five reasons to buy this high-flying stock like there's no tomorrow.

1. Alphabet remains an advertising juggernaut

Advertising on Google Search, YouTube, the Google Network, and other related products continues to generate more than 72% of Alphabet's total revenue. The great news for the company is that this ad revenue is growing, jumping 12.6% year-over-year in the third quarter of 2025.

Contrary to ominous predictions after OpenAI launched ChatGPT in late 2022, generative AI has provided a catalyst for Google Search instead of being a "Google killer." Search engine traffic has increased as a result of Google's implementation of genAI integration with AI Overviews and AI Mode. GenAI products such as Imagen4 are also helping customers create more and better online ads.

2. Google Cloud's momentum seems unstoppable

Generative AI has also created a massive tailwind for Google Cloud, Alphabet's cloud platform. Google Cloud remains the fastest-growing of the big three cloud service providers. The unit's revenue soared 34% year-over-year to $15.2 billion in Q3. Google Cloud's backlog increased 46% quarter-over-quarter to $155 billion.

Alphabet CEO Sundar Pichai mentioned in the Q3 earnings call that Google Cloud signed more deals of over $1 billion in the first nine months of 2025 than it did in the previous two years combined. I believe this momentum is practically unstoppable right now, especially with more organizations implementing agentic AI solutions.

3. Google Gemini is a force to be reckoned with

Alphabet's large language model (LLM), Google Gemini, is the key driver behind the company's AI success thus far. I fully expect that Gemini will continue to attract customers to Google Cloud and help Google Search stay at the top, especially with the recent launch of version 3.0.

Guess what the No. 1 overall AI model is on LMArena's leaderboard? Google Gemini 3.0 Pro. And Gemini 3.0 Flash ranks third. Alphabet has thrown down the gauntlet. Google Gemini is a force to be reckoned with.

Image source: Getty Images.

4. Waymo is a rising star

The robotaxi market holds the potential to be huge within the next few years. Alphabet's Waymo unit is the leader in this market.

Waymo currently offers autonomous ride-hailing services in Atlanta, Austin, Los Angeles, Phoenix, and the San Francisco area. It's planning to expand soon to 12 additional cities, including London, England.

I predict that Waymo will be worth hundreds of billions of dollars within the next few years. It's off to a good start for my prediction to be fulfilled. Alphabet is in discussions to raise an additional $15 billion or so in funding for Waymo, which would peg its valuation at up to $110 billion.

5. Alphabet has multiple other ways to grow

The best stocks offer something called optionality. This term refers to the fact that they have multiple paths to growth.

Google plans to launch AI-powered glasses this year. I think that the company will be a top contender in the smart glasses market and give Meta Platforms (NASDAQ: META) a run for its money.

Alphabet's famous "Other Bets" could pay off in several ways. While Waymo is the most prominent member of the group, don't overlook the potential for drone delivery company Wing and healthcare technology unit Verily.

Quantum computing could also be a lottery ticket for Alphabet. Google Quantum AI has achieved two of the six milestones on its roadmap. Does Alphabet need this lottery ticket to deliver market-beating gains over the next few years? No, but quantum computing could help make the stock an even bigger winner.

Keith Speights has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool has a disclosure policy.