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“Unstoppable Giants: Investing in Companies Fortified with Impenetrable Moats”

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The Dominance of Alphabet

Alphabetโ€™s supremacy in the tech world is akin to Google being the go-to for any digital queries โ€” a ubiquitous presence that reinforces its unbeatable stronghold. The companyโ€™s revenue, predominantly fueled by advertising through Google, continues to soar, with an iron grip on over 90% of the search market. This dominance not only solidifies Alphabetโ€™s position but also cements its competitive edge.

The emergence of AI technology has further fortified Alphabetโ€™s moat, with innovations like Gemini heightening search capabilities. These advancements not only enhance the user experience but also attract advertisers through tailored campaign solutions. Sundar Pichaiโ€™s revelation of heightened interest underscores Alphabetโ€™s evolving strength in the tech landscape.

The Resilience of Apple

Think of Apple not just as a tech giant but as a household name; a brand that resonates with consumers and ensures their unwavering loyalty. Appleโ€™s stronghold lies in its brand power, evident through the record-breaking iPhone market share and the exponential growth in its user base, which recently hit a staggering 2.2 billion worldwide.

Appleโ€™s ability to retain existing customers while attracting new ones is a testament to its enduring brand appeal. The companyโ€™s financial growth, exemplified by soaring earnings and enhanced return on invested capital, underscores the wisdom of its strategic investments over the years.

AAPL Net Income (Annual) Chart

AAPL Net Income (Annual) data by YCharts.

Trading at 27x forward earnings estimates, Apple offers investors a reasonable entry point into a company that has consistently delivered growth and shows promising prospects, thanks to its unassailable moat.

Should you invest $1,000 in Apple right now?

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Foolโ€™s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolโ€™s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Foolโ€™s board of directors. Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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