Key Highlights
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Snowflake’s impressive 125% net revenue retention indicates strong customer appreciation for its offerings.
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Alphabet’s primary search operation continues to thrive, generating over $200 billion annually.
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Here are 10 stocks we believe outperform Alphabet.
This year has been favorable for tech stocks, with the Nasdaq Composite rising 13%, outperforming the S&P 500 and Dow Jones Industrial Average.
Let’s delve into two leading tech stocks and explore why they could be viable long-term investments.
Looking to invest $1,000 now? Our analysts have identified the 10 best stocks to buy right now. Learn More »
Snowflake
Snowflake’s stock has more than doubled over the past year. The cloud-based data analytics company is capitalizing on the swift expansion of artificial intelligence (AI) technologies.
In its latest quarter ending July 31, 2025, Snowflake reported:
- $1.09 billion in revenue, up 32% year-over-year
- 654 customers spending over $1 million in the last 12 months, a 30% increase
- 125% net revenue retention, indicating that existing customers are increasing their investment over time
The key to these strong results lies in data management. Organizations are inundated with data and require tools to identify efficiencies. Snowflake provides those tools, enabling companies to utilize AI across various cloud providers, including Amazon, Microsoft, and Alphabet.
Future Expectations for Snowflake
Looking ahead, analysts predict Snowflake will earn $4.6 billion this year and $5.7 billion next year, representing growth rates of 27% and 23.6%, respectively. However, the company faces risks typical for growth stocks, including a high price-to-sales ratio of 18.
Alphabet
It’s been a strong year for Alphabet as well, with shares increasing approximately 26% year-to-date, making it one of the top mega-cap stocks, just behind Nvidia. The company’s market capitalization is nearing $3 trillion, positioning it among elite peers like Nvidia and Microsoft.
Alphabet’s strong performance can be attributed to effective execution and favorable legal outcomes. Despite initial concerns regarding its key Google Search business amid the rise of large language models, Google reported $54 billion in revenue last quarter, a growth from $49 billion the previous year.
Legal Milestones for Alphabet
Alphabet also gained a significant legal victory recently when a judge dismissed a proposal for the company’s breakup, alleviating uncertainty stemming from an antitrust lawsuit filed in 2020.
Investment Considerations
Before deciding to invest $1,000 in Alphabet, consider this: The Motley Fool’s Stock Advisor team identified other top stocks to buy now, excluding Alphabet from their recommendations. Their top selections have historically yielded extraordinary returns.
