It has been a stellar year for Alphabet (NASDAQ:GOOGL) and its investors. The back half of the year was particularly strong, with GOOGL’s share price more than doubling in value since the spring months.
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While the market’s improving mood certainly contributed to this run, Alphabet has provided investors with plenty of reasons to be pleased. The company recently hit $100 billion in quarterly revenue, which represented 16% year-over-year growth, while its operating margin came in above 30%.
The fears that LLMs would be making Alphabet’s search engines a relic of the past have certainly gone by the wayside. In fact, quite the opposite has occurred, as AI has turned into a powerful growth driver for the company.
Indeed, Alphabet shared that it reached more than 2 billion monthly active users of its AI Overviews feature earlier this year, and the recent launch of Gemini 3 was met with widespread acclaim.
Will the company’s momentum continue into the new year? Top investor Jennifer Saibil is betting on it, and she is picking GOOGL as one of her three best stocks to own in 2026.
“Alphabet has a stable and growing business that can keep growing in 2026 and the long term,” states the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.
Saibil points out that the company’s large expanse of products and services provides Alphabet with numerous revenue streams. The company even has hardware devices, reminds the investor, including phones and autonomous vehicles.
Of course, Alphabet’s biggest source of revenues is its search engine, and Saibil notes that its “vast moat” is safeguarding its dominant position.
“Google Search is by far the most-used internet search engine,” reminds Saibil. “That gives the company a tremendous edge in a space used by millions of users daily.”
And yet, despite its recent run, incredible revenues, and the AI tailwinds, Saibil believes that GOOGL remains a bargain.
“Although it trades at a premium to the S&P 500 average and its own recent averages, it’s still fairly cheap for a growth stock, trading at a P/E ratio of 32,” adds Saibil. (To watch Jennifer Saibil’s track record, click here)
Wall Street seems to agree with this take. With 29 Buys and 7 Holds, GOOGL enjoys a Strong Buy consensus rating. Its 12-month average price target of $320.15 implies minimal movement going forward, meaning that analysts might be revising their assessments and/or price targets soon. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.