Investing Insights: Why Alphabet and CrowdStrike Shine in a Struggling Market

The year 2025 has not started favorably for several U.S. stock market indexes and major tech companies. The S&P 500 narrowly avoided a correction, while the Dow Jones has seen declines. Meanwhile, the Nasdaq Composite has officially entered a correction phase, following a brief bear market.

Several factors contribute to these market challenges, including President Donald Trump’s new tariff strategy and the expected backlash associated with it. The market’s response indicates that investors are not optimistic about a favorable outcome.

Where should you invest $1,000 right now? Our analyst team has identified the 10 best stocks to consider for your investment. Learn More »

Amidst the uncertainty, two artificial intelligence (AI) stocks appear particularly promising: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and CrowdStrike (NASDAQ: CRWD).

Image source: Getty Images.

1. Alphabet: A Substantial Opportunity

Alphabet, the parent company of Google, YouTube, Waymo, and AI research firm DeepMind, has seen its stock price decline since reaching an all-time high on February 4. This decline may make now a strategic time to invest.

Google Search remains Alphabet’s primary revenue driver, generating $54 billion in the fourth quarter, a 12% year-over-year increase, which accounted for 56% of its total revenue. In total, revenue from Alphabet’s various platforms, including YouTube ads and Google Network, comprised 75% of the company’s overall revenue.

GOOGL Revenue (Quarterly) data by YCharts.

The advancements in AI are creating significant growth opportunities for Alphabet, particularly in its Google Cloud and office software segments. Positioned as the third-largest cloud provider, Google Cloud has grown its market share from 4% to 12% over the past six years, trailing only Amazon Web Services and Microsoft Azure.

One of Alphabet’s strengths is its comprehensive vertical integration in AI, allowing in-house research, training, and infrastructure support. This setup enables faster innovation and implementation compared to competitors relying on third-party resources.

While Google Cloud has room to grow, the cloud service market is large enough for multiple players to succeed. Furthermore, Alphabet’s recent contract offering with the U.S. government—which provides its office software at a 71% discount compared to Microsoft Office—could position them favorably in future bidding for government contracts if they demonstrate effectiveness and user-friendliness.

Currently, Alphabet’s stock trades with a price-to-earnings (P/E) ratio below 20, making it an appealing option for long-term investors.

2. CrowdStrike: A Leader in Cybersecurity

CrowdStrike approaches cybersecurity with an AI-first, cloud-native strategy. This model, in place since 2011, provides a considerable data advantage over competitors transitioning to similar solutions.

With a growing customer base, CrowdStrike services 62 of the Fortune 100 for cloud security, landed over 20 contracts exceeding $10 million in the fourth quarter, and reports that 21% of users engage at least eight of its platform’s modules. Recently, Google recognized CrowdStrike as its 2025 Google Cloud Security Partner of the Year for Workload Security.

CrowdStrike’s effective platform continues to evolve and this reflects in its financial success. The company achieved over $1 billion in subscription revenue for the first time in Q4, boasting 80% gross margins. Moreover, free cash flow exceeded $1 billion over the past year, showcasing a strong upward trend in financial performance.

CRWD Free Cash Flow (Annual) data by YCharts.

As the demand for cybersecurity continues to rise in our increasingly digital world, CrowdStrike is well-positioned as a key player. The company estimates its total addressable market (TAM) for AI-native security at approximately $116 billion this year, with projections to reach $250 billion by 2029, reflecting a compound annual growth rate of 16.5%.

CrowdStrike’s growth trajectory has generally outpaced the overall market, and maintaining pace with the expanding TAM for AI-native security should support solid long-term returns. Expect some stock volatility in the near term, but consistent investments in CrowdStrike are likely to be rewarding over time.

Should You Invest $1,000 in Alphabet Right Now?

Before making any investments in Alphabet, consider this:

The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks to invest in now, and Alphabet is not among them. The stocks that made the list have strong potential for significant future returns.

For instance, consider Netflix, which made this list on December 17, 2004. Investing $1,000 at that time would now be worth $518,599!* Similarly, with Nvidia making the list on April 15, 2005, an investment of $1,000 then would be $640,429 today!

Keep in mind that Stock Advisor has delivered an average total return of 791%—significantly outperforming the 152% return of the S&P 500. Don’t miss the latest top 10 list available when you become a member of Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 14, 2025

John Mackey, former CEO of Whole Foods Market, now part of Amazon, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is also a board member. Stefon Walters holds positions in CrowdStrike and Microsoft. The Motley Fool recommends Alphabet, Amazon, CrowdStrike, and Microsoft and has positions in these companies. The Motley Fool also endorses long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. For detailed disclosures, please refer to the Motley Fool’s policy.

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