"Investing in high-quality companies with substantial competitive advantages and consistent growth can be a smart long-term growth strategy. Successful investing isn't about chasing quick wins. Instead, it involves buying stakes in high-quality businesses with durable moats, strong financials, and the ability to adapt to emerging trends -- and holding those stakes for the long term. These companies can reward shareholders across generations."
"Alphabet is currently targeting online search, cloud computing, and artificial intelligence (AI) -- three markets that are already worth hundreds of billions of dollars each, and that have all been expanding rapidly for several years. With a market capitalization of over $3 trillion, $95 billion in cash on its books, and $66.7 billion in trailing 12-month free cash flow, Alphabet boasts exceptional financial strength."
"AI is already helping Alphabet fend off competition for its flagship Google Search offering. With new features such as AI Overviews (AI-generated summaries with links to their sources) and AI Mode (an end-to-end AI search experience), the company is reshaping how its users look for information. AI Overview now reaches over 2 billion monthly users and generates nearly 10% more queries when shown."
Long-term investing focuses on buying stakes in high-quality businesses with durable moats, strong financials, and the ability to adapt to emerging trends. Alphabet targets online search, cloud computing, and artificial intelligence—markets worth hundreds of billions and expanding rapidly. Alphabet’s market capitalization exceeds $3 trillion, it holds about $95 billion in cash, and generated roughly $66.7 billion in trailing 12-month free cash flow, enabling investment in AI infrastructure, Waymo, and other projects while returning capital via dividends and share repurchases. AI features such as AI Overviews and AI Mode are reshaping search and increasing user engagement. YouTube combines a dominant advertising engine with growing subscription revenue streams.
Read at The Motley Fool
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