Is Alphabet the Best FAANG Stock to Bet on This Decade?
The "FAANG" companies were some of the hottest stocks of the last decade. The acronym stands for Facebook (which has since changed its name to Meta Platforms), Amazon, Apple, Netflix, and Google, (which changed its name to Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)). Besides Meta Platforms, all the FAANG stocks have handily beaten the market for the past 10 years, delivering phenomenal returns for their long-term shareholders.
But in the next decade, I think Alphabet will be the best FAANG stock to own. Here's why.
All five FAANG businesses have strong competitive advantages. But none besides Alphabet has a key offering with the scale and dominance of Google Search. It has approximately 90% market share for internet searches worldwide and over 4 billion regular users, making it the most used single product on the planet. With all this usage comes a boatload of advertising revenue -- close to $40 billion last quarter alone. Search marketing has extremely high margins at scale and accounts for the vast majority of Alphabet's $78.5 billion in trailing 12-month operating income. A majority of the world's population will become habitual internet users in the coming decade, and the number of people using Google Search should get close to 8 billion.
Source Fool.com
