3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term | The Motley Fool

"Alphabet has long been a digital-advertising juggernaut through its Google search engine and YouTube streaming platform. That remains the case today, but artificial intelligence (AI) is the company's biggest growth opportunity ahead. Alphabet has become an AI leader by controlling the whole AI stack by having its own custom AI chips and developing its own world-class large language model (LLM) in Gemini. This gives it a cost advantage and lets it enjoy more AI revenue streams."

"The company has seen robust growth at its cloud computing unit Google Cloud, which saw its revenue and operating income soar 34% and 85%, respectively. AI is also helping drive search queries and revenue growth, as Alphabet has embedded AI throughout its products with such features as AI Mode and AI Overviews, as well as new ways to search, like Lens and Circle to Search."

"The restaurant industry can be tough, but Toast has become an important partner in helping small- and mid-sized restaurants succeed. The company's platform can help customers run their entire operations, including not just payment processing, but everything from marketing and menu design to staffing and payroll. The more modules customers adopt, the more money Toast makes and the stickier its platform becomes. Meanwhile, the company benefits from its customers' success through its payment processing, where it gets around 50 basis points."

Growth stocks have helped lead the market higher for much of the past decade and remain favored for companies with strong revenue and earnings-growth prospects. Alphabet dominates digital advertising via Google Search and YouTube while pursuing AI-driven expansion through custom AI chips and the Gemini LLM, creating cost advantages and new revenue streams. Google Cloud posted strong revenue and operating-income growth, and AI features like AI Mode, AI Overviews, Lens, and Circle to Search are boosting queries and monetization. Toast offers an integrated restaurant platform covering payments, marketing, menu design, staffing, and payroll; modular adoption increases revenue and customer stickiness, and payment processing generates roughly 50 basis points per transaction.

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