Which Stock Would an Investor Choose to Start a Portfolio with $500

According to James Bramle, author at The Motley Fool, if he were to restart investing with only $500, he would choose to invest in Alphabet shares. In his view, the parent company of Google is one of the most reliable choices for long-term investment, despite the fact that technology sector stocks often experience significant price fluctuations.

The author notes that Alphabet's main advantage lies in its services, which are used daily by billions of people worldwide. Google remains the most widely used means of finding information on the internet. Android is used on a large portion of the world's mobile phones. According to the company's data, Gmail is used by 3 billion people. Additionally, in the United States, users spend more time on YouTube than on Netflix and Disney's online platforms.

According to Bramle's assessment, Alphabet has an effective system for generating revenue from these services. He states that since 2012, the company has failed to record annual revenue growth only once—in the second quarter of 2020—when the impact of the pandemic on the world was particularly severe.

Despite strong financial results, Alphabet's share price has declined. Investor concerns were triggered by the company's plan to spend $195–205 billion in 2026 on artificial intelligence development.

The author believes this decline in share price is temporary. Alphabet is already seeing significant results from its artificial intelligence investments. In the last quarter, revenue from the company's cloud services division grew by more than 80%, while operating profit increased threefold.

According to Bramle's assessment, given the scale of Google's services and their role on the internet, Alphabet remains a strong investment choice in the long-term perspective.

Source: Yahoo Finance