10 Most Profitable Large Cap Stocks to Buy Now

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Last year net income: $73.80 billion

Alphabet Inc. (NASDAQ:GOOGL) is a global technology company that operates businesses in digital advertising, cloud computing, artificial intelligence, and consumer electronics. Its core subsidiary, Google, provides search, online advertising through Google Ads, YouTube, and cloud services via Google Cloud. GOOGL also develops Android, Google Play, Chrome, and hardware products like Pixel devices. The company invests in AI, autonomous driving through Waymo, and life sciences through Verily, and operates globally, offering digital tools and services to consumers, businesses, and developers across various industries.

Alphabet Inc. (NASDAQ:GOOGL) is strategically positioned to achieve significant success at scale in AI over a long period, with a comprehensive infrastructure stack including data centers, TPUs, GPUs, and research teams. The company’s cloud and YouTube platforms have reached a combined annualized revenue of over $110 billion. In terms of operational efficiency, Alphabet continues to focus on cost optimization while maintaining investments in strategic areas, particularly in AI and cloud. The company’s search metrics remain healthy, with increased engagement in AI Overviews and commercial queries, processing over 5 trillion queries annually. YouTube has emerged as the #1 streamer in the US in terms of watch time for two years, demonstrating strong growth across creators, viewers, and advertisers.

Alphabet Inc. (NASDAQ:GOOGL)’s capital allocation priorities focus on funding technical infrastructure, exploring M&A opportunities, and returning cash to shareholders, with $70 billion returned to shareholders last year. In Other Bets, GOOGL is strategically increasing investments in Waymo while making selective choices across other ventures, demonstrating a focused approach to long-term growth opportunities. With strong guidance ahead and almost $74 billion in net profit generated, GOOGL is one of the most profitable large cap stocks to buy now.