A growing giant

Google parent company Alphabet (Nasdaq: GOOGL) (Nasdaq: GOOG) is a favorite among tech investors, largely because of Google’s dominant position in online search and advertising. Google is so much more than a mere search engine, though. It’s an entire ecosystem ultimately designed to monetize its users no matter how they use it.

Think about it. The world’s 1.5 billion-plus users of Gmail may love the fact that it’s “free.” But once logged in with their Google credentials, those consumers are automatically logged into the company’s other offerings, like Google Docs and Google Maps, as well as the Google Play app store — and Youtube, the world’s busiest video hosting platform, boasting over 2 billion monthly users. All of that helps Alphabet build digital profiles of its users, which in turn helps Google show you highly targeted advertisements. And to top things off, Google’s Android operating system dominates the mobile device market.

Looking ahead, Alphabet has plenty of growth drivers. Google will continue to be a cash cow and should benefit from a recovery in the advertising market. Development in areas such as artificial intelligence and autonomous vehicles is going well, and despite regulatory pressure, the business overall remains solid. Even better, its stock has been reasonably valued at recent levels, and is well worth considering for your long-term portfolio. (The Motley Fool owns shares of and has recommended Alphabet.)