GOOG Stock Alert: 3 Reasons to Buy Alphabet Right NOW

Alphabet Inc. (NASDAQ: GOOG) is demonstrating significant growth potential for 2024, bolstered by robust revenue and EPS growth in FY23 driven by the demand for artificial intelligence. The advertising revenue generated through Google Search and YouTube, paired with a likely soft landing, could boost capital allocation in 2024, benefiting GOOG stock investors.

Recently, Alphabet recorded a year-over-year revenue increase of 11% in its quarterly results, totaling to $76.7 billion, with a remarkable operating income of $21.3 billion. The tech giant's cloud business and ongoing AI initiatives, like the Gemini model, indicate promising momentum for Alphabet's future growth.

Established initially as a search engine, Alphabet now thrives on various revenue sources. Google and YouTube advertising continue to generate significant revenue, but the rapidly growing Google Cloud significantly contributes to this by improving business productivity, security, and cost efficiency. Alphabet constantly upgrades its offerings through Generative AI, attracting businesses with an attractive $300 sign up credit.

Google Cloud recorded robust revenue growth, reaching $8.4 billion in Q3, a 22.5% year-over-year increase. It turned profit in 2023, generating $266 million in operating income during Q3, which is a sharp contrast to the operating loss of $440 million reported in the corresponding period of 2022.

In the realm of quantum computing, Alphabet's endeavors are particularly noteworthy. A forecast suggests a potential 3X growth by 2025. Google's Quantum Artificial Intelligence Lab, which collaborates with NASA and the Universities Space Research Association, operates as an open-source library that supports the application of quantum computing. This includes quantum circuit creation software Cirq and several quantum chemistry and machine learning software.

Google maintained a solid 83.5% share of the global desktop search engine market in July 2023, slightly less than the 84% share in 2022. Simultaneously, Alphabet's digital advertising sales saw a 9% surge in Q3, consequently raising the company's quarterly profit to $19.7 billion, a 42% increase from the previous year. This was coupled with cost reductions and an 11% increase in total revenue to $76.69 billion, beating market predictions. The strategic reduction of over 7,800 personnel also contributed to these positive financial figures.

Despite Google being the dominant player in the global digital advertising market, holding around 39% of the revenue share, some analysts may raise concerns given the workforce reduction. To ensure they remain a top choice for advertisers, Alphabet utilizes AI and machine learning integrations in Google Ads. This includes real-time bidding decisions, campaign efficiency, and predictive analytics, thereby enabling advertisers to stay ahead of the competition.

On the date of publication, Chris MacDonald did not hold any positions, whether directly or indirectly, in the securities discussed in this article. The writer's views, which are expressed in this article, are subject to the InvestorPlace.com Publishing Guidelines.