‘A Bet Worth Making,’ Says Top Investor About Alphabet Stock

Alphabet (NASDAQ:GOOG) has thrown itself at many different projects over the years, expanding well beyond the search engine algorithm that spurred its rise to riches story. Some have gone well (i.e. Gmail) while others have flopped (such as Google Buzz).

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In short, the company is no stranger to spending money. It’s safe to say that it’s doing so yet again.

Alphabet has guided for between $175 to $185 billion in capex this year, which at the high end would more than double the amount it spent in 2025. However, it’s not just the spending that’s increasing, as the company’s Q4 2025 revenues grew to $113.8 billion (an increase of 18% year-over-year).

Moreover, Google Cloud accelerated even faster, chalking up $17.7 billion in revenues (a growth rate of 48% year-over-year).

It’s this nexus of cash and spending that interest top investor Daniel Sparks.

“Alphabet’s cloud computing segment is soaring, but investors must weigh this momentum against the company’s massive capital expenditure plans,” explains the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.

Though Sparks notes Alphabet’s torrid revenue growth, he also points out that the company’s bottom line is gaining steam as well. For instance, Google Clouds’ operating income of $5.3 billion in Q4 2025 was a healthy increase from the $2.1 billion it delivered in Q4 2024.

That’s not to say that Sparks isn’t aware of the weight of the massive capex, even acknowledging that its planned spending this year is “an enormous sum.” Still, Sparks predicts that the company management will be responsible stewards.

“While spending like this is a risk, it’s also an opportunity,” states Sparks. “I believe Alphabet will capitalize on it while managing the risks prudently.”

That gives the investor a ton of confidence that GOOG will be on the up-and-up. He deems it fully “reasonable” to expect the strong revenue growth and bottom-line numbers to continue in the coming five years.

He’s even willing to bet that GOOG may even double its share price during that timeframe.

“Given its momentum in the cloud and its market leadership in search, I think it’s a bet worth making,” concludes Sparks. (To watch Daniel Sparks’ track record, click here)

There’s little argument on Wall Street. With 12 Buys and 1 Hold, GOOG soars to a Strong Buy consensus rating. Its 12-month average price target of $385.90 points to an upside just shy of 30%. (See GOOG stock forecast)

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.

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