I think this is as compelling a reason as any to buy the stock, as the growth implied by this backlog is massive. With Alphabet’s stock down around 10% from its all-time high, now may be the perfect time to buy shares.<\/p>\n
![\"Alphabet's](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/06\/6fdc0cb88652ad37fce56b24c9245cef.png\")
Image source: The Motley Fool. Google Cloud is a top reason to buy Alphabet’s stock <\/p>\n
During Q1, Alphabet’s Google Cloud quarterly revenue reached $20 billion. So, at this mark, it will take about 23 quarters to churn through the $463 billion backlog. However, Google has no plans to let that backlog last for more than five years. Google Cloud is rapidly growing, and it has increased its revenue at a jaw-dropping 63% year over year. Compared to other cloud computing firms<\/a>, this is a far greater growth rate.<\/p>\n Amazon’s Amazon Web Services (AWS) grew at a 28% clip and added $8.3 billion in new business. Google Cloud added $7.8 billion. So, just because Google Cloud is trailing the industry leader right now in overall size, it doesn’t mean that it isn’t adding as much new business. Microsoft’s Azure cloud platform grew its revenue at a 40% clip, but the company doesn’t break out the actual revenue figures; that’s still a slower growth rate than for Google Cloud.<\/p>\n Google Cloud has a ton of momentum, and it’s planning on carrying that into the next few years as it churns through the backlog. It is spending a massive amount of money on data center capital expenditures and recently bumped its 2026 guidance to spend between $180 billion and $190 billion this year. Demand for AI computing power has never been higher, and Alphabet is spending big to make sure that it has the capacity that its clients want. While 2026’s expenditures are massive, Alphabet’s management team noted in the call that 2027’s capital expenditures will be “significantly” higher.<\/p>\n Story Continues <\/p>\n While some investors may be concerned about the spending, I am not. As Amazon’s CEO, Andy Jassy, pointed out in its shareholder letter, the faster a cloud computing business grows, the more it must spend on infrastructure to support the growth. This indicates that Google Cloud’s growth rate will likely accelerate as more computing capacity comes online, further strengthening the bull argument for Alphabet’s stock.<\/p>\n With Google Cloud easily being the fastest-growing part of Alphabet’s business, it will continue to capture a greater share of quarterly revenue, transforming Alphabet from an advertising-first business to a more balanced one. That’s a welcome change for investors, as cloud revenue is steadier versus advertising, which can go up and down based on economic cycles.<\/p>\n But is Alphabet still a solid buy now?<\/a><\/p>\n Alphabet’s stock has gone on an incredible run over the past year <\/p>\n Alphabet’s stock has more than doubled over the past year, and some of that was due to its rise from an absurdly low valuation. That’s no longer the case, as Alphabet trades for about 26 times forward earnings.<\/p>\n While that may be a historically expensive mark for Alphabet, it’s still in line with where other tech giants are trading right now. With Alphabet’s transformation from an advertising-focused business (which usually traded at a discount due to the cyclical nature of the industry) to a cloud company, I think this valuation level is appropriate, and investors can confidently buy Alphabet’s stock today with\u00a0expectations of outperforming the market over the next five years.<\/p>\n Should you buy stock in Alphabet right now? <\/p>\n Before you buy stock in\u00a0Alphabet, consider this:<\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Alphabet\u00a0wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $393,037!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $1,280,627!*<\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 23, 2026. <\/p>\n Keithen Drury<\/a> has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy<\/a>.<\/p>\n<\/a> GOOG PE Ratio (Forward)<\/a> data by YCharts<\/a> <\/p>\n