If You Buy Alphabet With $10,000 in 2025, Will You Become a Millionaire in 10 Years?
Key Takeaways
This dominant internet business has been a huge market outperformer in the past.
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4 min read
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investment
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July 28, 2025
08:23 PM
The Motley Fool
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The analysis demonstrates "With 15 ducts that each serve half a billion people, and six that serve over 2 billion each, we have so many opportunities to der on our mission," CEO Sundar Pichai said in Alphabet's (GOOGL -0. 30%) (GOOG -0. 32%) second-quarter 2023 press release
Additionally, There aren't many es out there, if any, that have the reach and adoption that this one does
Moreover, Alphabet has vided a huge boost to investor portfolios since its initial public offering in 2004
This titan is a powerful enterprise these days, but it's not even close to reaching its potential, as growth is still a key part of the story
In contrast, That introduces more upside for patient investors, given current economic conditions
In contrast, If you buy $10,000 in Alphabet stock in 2025, will you become a millionaire in 10 years
On the other hand, Image source: Alphabet
Conversely, Alphabet's impressive second quarter The momentum continues for Alphabet, which exceeded Wall Street expectations on both the top and bottom lines (something worth watching)
Moreover, Revenue jumped 13. 8% year over year to $96
Diluted earnings per (EPS) soared 22, in today's market environment
Performance was superb across the board
Google revenue was up 11
Additionally, 8%, while YouTube ad sales grew 12
Google Cloud was a standout
In contrast, 7%, faster than its rate in the first quarter
Additionally, And the segment posted a 20. 7% operating margin, as it starts to see benefits from scaling up, considering recent developments
Nevertheless, Betting big on AI Alphabet is wildly fitable
In 2024, it duced $100 (noteworthy indeed). 1 billion in net income
Through the first six months of this year, net income totaled $62 (noteworthy indeed)
And as of June 30, its balance sheet had $95. 1 billion in cash, cash equivalents, and marketable securities (noteworthy indeed), in today's financial world
Additionally, Conversely, As a result, the company has the financial resources to go all-in on artificial intelligence (AI)
Management now plans $85 billion in capital expenditures (capex) this year to expand nical infrastructure
In contrast, That's up from a prior outlook of $75 billion (something worth watching)
Additionally, Investors should think this monster level of spending from multiple angles (an important development), given current economic conditions
On the one hand, it might be table stakes to maintain Alphabet's powerful competitive position in its various verticals
If its peers are spending huge amounts of money, it should as well
If it doesn't, there's a risk the will fall behind in the AI race
Nevertheless, What's more, it already has so many services that it can ly see how AI can benefit its ability to serve users and customers
Additionally, And if there's so much demand for AI tools and services within Google Cloud, the has no choice but to continue bolstering its offerings. "We're seeing significant demand for our comprehensive AI duct portfolio," Pichai said Google Cloud's success in the second-quarter earnings call, given the current landscape
But it's easy to be critical, too, given current economic conditions
Nevertheless, Allotting $85 billion for capex this year, which would be 61 (fascinating analysis). 9% higher than last year's already lofty $52, in this volatile climate
Nevertheless, 5 billion, could be a reason to worry
No one has any clue what the ultimate payoff will be from these investments (remarkable data)
If AI doesn't end up being the game-changing breakthrough many think it will be, then these cash outlays will ve to be wasteful
Buy the stock, but set realistic expectations Alphabet is in a position to continue its double-digit revenue and EPS growth for the foreseeable future
It's already a leader in AI, and with the amount of capital it's deploying, it's ready to dominate what could be the next nological revolution
However, it's totally unrealistic to expect a 100-fold gain in 10 years; this is a huge enterprise already
In fact, investors shouldn't look for companies that can put up that kind of gain, which is almost impossible
Investors should still consider buying the stock, though, which trades at a compelling forward price-to-earnings ratio of 19
Furthermore, It could beat the market over the next decade.
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