By Joel South
Publication Date: 2026-10-06 12:00:00
Alphabet just posted 40% gains and trades at a cheaper multiple, so why does one analyst still reach for Microsoft when building a retirement position that has to last decades?
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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) orAlphabet (NASDAQ:GOOGL): If you could buy only one AI giant for your account and hold it for decades, which one belongs there right now? I pick Microsoft. Alphabet has the stronger recent momentum, and Microsoft still wins on durability.
Alphabet’s Strongest Case, and Why It Falls Short
Alphabet’s bull case is a strong one. Its shares gained 40.91% over the past year, compared with 2.7% for Microsoft. Alphabet changes hands at 15 times trailing earnings, while Microsoft trades at 29. Google Cloud revenue jumped 82% to $24.77 billion in the second quarter.
That cheap multiple is inflated by a one-time item,…
