Hindsight is 20/20, the saying goes, and everyone wishes they had gotten onboard the Alphabet (NASDAQ:GOOGL) rocketship many years ago. Indeed, an investment of $1,000 in 2014 would be worth almost $6,000 today, representing growth of almost 500%.
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While GOOGL’s share price continues to trend upwards for the year, it hasn’t exactly been smooth sailing.
Indeed, the first months of the year saw GOOGL slink downwards, as DeepSeek worries, massive AI capex spending, and overall fears of a market slowdown all pressured shares. Since hitting a mid-April trough, however, GOOGL’s share price has jumped up by almost 40%.
Should now be the time to take profits? Not according to investor A.J. Button, who doesn’t plan on parting with Alphabet ever again.
In fact, the 5-star investor believes his 2024 decision to exit his position represents a big blunder on his part. Though he has since purchased roughly a quarter of his previous holdings, Button is still kicking himself.
“Despite me having partially made up for the badly-timed sell, I still consider it among my worst-ever investing mistakes,” admits Button.
The investor points to Alphabet’s durable competitive advantages that make it an exceptionally resilient company. This includes a massive services ecosystem, along with numerous products and billions of users — allowing the company to cross-sell its various products far and wide.
“The power of bundling was seen when Google launched AI Pro, its AI subscription service, which included all of the features that ChatGPT Plus offers, plus cloud storage and AI integration in Google Suite services,” adds Button, who emphasizes that only a company of Alphabet’s size and stature could have created such an offering.
The Google Cloud is also a source of comfort for Button, who notes that the company has built a unique collection of tools for AI developers along with the “best AI infrastructure on the planet.”
In other words, Button believes the smart move is to jump on board and stick around for the long haul.
“After revisiting Google’s moat, I’ve decided to never sell again,” sums up Button, who rates GOOGL a Buy. (To watch Button’s track record, click here)
Wall Street appears quite content to stick around as well. With 27 Buy and 9 Hold ratings, GOOGL boasts a Strong Buy consensus rating. Its 12-month average price target of $217.25 has an upside in the high single digits. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.