"With a market cap of almost $3 trillion, Alphabet is one of the largest companies in the world. However, the tech leader has growth prospects that would make corporations a tenth of its size blush. First, Alphabet's core business remains an incredible opportunity. The company dominates the digital ads market thanks to Google and YouTube, which are the leading platforms in their respective niches and among the most popular websites worldwide."
"Alphabet also benefits from network effects across both platforms, as its deep ecosystem grants it access to data that allows it to improve its search algorithms. The digital advertising market is projected to continue growing through the end of the decade (and beyond), which should provide a strong tailwind to Alphabet. Notably, the rise of artificial intelligence (AI) chatbots did not significantly disrupt Google's search volume, as the company has adapted by adding AI overviews to its search results."
Alphabet and Veeva Systems present strong prospects to outperform broader equities through the end of the decade based on market dominance and competitive moats. Alphabet dominates digital advertising via Google and YouTube, benefits from network effects and vast data to refine search algorithms, has integrated AI into search results, and avoided severe antitrust remedies. Alphabet also has additional growth opportunities in cloud computing. Veeva Systems leads specialized cloud software for life sciences with recurring subscription revenue, high customer retention, and attractive margins. Both companies possess scalable platforms and secular tailwinds that support sustained long-term returns.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]