Up More Than 70% in 12 Months, Is It Too Late to Buy Alphabet Stock?
The Motley Fool
by newsfeedback@fool.com (Daniel Sparks)February 26, 2026
AI-Generated Deep Dive Summary
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) has seen its stock price rise by over 70% in the past year, significantly outpacing broader market indices like the S&P 500. While Alphabet's performance has been strong, investors are now questioning whether it’s still a good time to buy the stock, given its elevated valuation compared to just 12 months ago. The article explores whether Alphabet’s growth trajectory and current value justify investing at these higher levels or if potential buyers should wait for a more favorable entry point.
Over the past year, Alphabet has demonstrated robust growth, driven by its dominant position in key tech sectors such as search engines, cloud computing, and advertising. Despite this momentum, the stock has slightly lagged behind the S&P 500’s gains so far in 2026, with the index up 1% year-to-date compared to Alphabet’s modest performance. However, the company’s impressive 70% gain over the last 12 months highlights its resilience and growth potential.
The key consideration for investors is whether Alphabet’s current valuation reflects its future earnings potential. While the stock’s price has increased substantially, so too have its fundamentals, including strong revenue growth and expanding profit margins. Analysts suggest that Alphabet’s ability to innovate and maintain its competitive edge in digital advertising and other tech segments positions it as a long-term growth play.
For investors evaluating whether to buy Alphabet now or wait for a potential pullback, the decision hinges on their risk tolerance and investment horizon. Those with a long-term perspective may find value in Alphabet’s continued growth prospects despite its elevated valuation. However, short-term investors might be more cautious, seeking opportunities for lower entry points before committing significant capital.
Ultimately, Alphabet’s stock performance and valuation are closely tied to its ability to sustain growth and adapt to evolving market conditions. Investors should weigh these factors carefully, considering both the company’s historical success and future potential against current market dynamics to determine whether now is the right time to invest in Alphabet.
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Originally published on The Motley Fool on 2/26/2026