Shareholders of big name tech firms have been some of the hardest hit by recent turbulence. That’s especially true for search engine juggernaut Alphabet Inc. (NASDAQ:GOOG, GOOGL). The Google stock price is down 20% from its summer highs above $1,200 per share.

Google has been hammered by jittery traders and worries about the wider market, but if you’re looking to scoop up long-term gems while prices are low it’s a pretty great option.

Of course, Google stock doesn’t come without risk, but the company’s long-term future looks pretty bright no matter what happens to the wider market.

Solid Financial Footing

One of the many reasons Google stock is worth considering is the fact that the company is in a strong financial position. This doesn’t  only provide investors with a great deal of security (it’s not going under anytime soon after all), but it also gives Alphabet’s management the freedom to explore new trends and set the company up for the future.

That’s especially important in the tech space where things like AI and the internet of things are likely to revolutionize the consumer environment over the next decade.

Google’s long-term debt is worth just under $4 billion and the firm is currently sitting on $106 billion worth of cash and short term investments. That’s a solid position that allows for quite a bit of wiggle room when it comes to research and development, acquisitions and taking on new projects. 

Data Is Everything

The only issue with that cash is that the vast majority of it is generated from just one of Alphabet’s businesses: search. Alphabet makes most of its money from advertising revenue on its Google search engine and bears say that’s dangerous when you consider the potential for competition and shifting regulations.

They’re not wrong, Google has been facing a number of regulatory challenges over the past few years as its competitors contend that the firm’s business practices aren’t fair. As regulators clamp down, Google could start to lose ground to competitors which would be a major blow to the firm’s bottom line.

However, Google won’t be reliant on its search engine ad space forever. The firm is already working to capitalize on the revenue potential that YouTube and Maps offer as well.

Plus, eight of Google’s products have 1 billion monthly active users. That’s what I’d call a pretty impressive moat because regardless of what happens to the economy in the coming year, 1 billion plus people are going to be searching, reading email, buying apps and getting directions through Google.

Advertisers simply can’t ignore that kind of reach, and the vast amount of data Google is able to collect by servicing so many people is hugely valuable.

Future Plans and Google Stock

The other thing you have to love about Alphabet is the fact that the company isn’t planning to rest on its search business forever. In the near-term Google is looking to generate revenue by monetizing YouTube and Maps, but looking into the future, Alphabet has even loftier goals. 

Alphabet is working on everything from healthcare projects seen extending people’s lives to autonomous cars and drone delivery services. If there’s a potential tech trend out there, Alphabet is working on it and that should be exciting for long-term investors who are looking for a safe bet that will carry them decades into the future.

Not only does Alphabet’s status as a top tier tech firm give the firm enough cash to develop projects like these without weakening the firm’s financial foundation, but the company’s pool of data means the firm has a lot to work with as the projects are researched and tested.

The Bottom Line on Google Stock

GOOG certainly isn’t a cheap buy, even at current levels. However, the firm’s future potential, financial strength and durability make it a worthwhile pick in an uncertain market.

Investors who are looking for a company that can deliver growth but isn’t high-risk should look to GOOG to bolster their portfolios. Although 2019 may bring about further market turmoil, Alphabet stock is likely to make it out unscathed and deliver long-term returns to patient shareholders.

As of this writing Laura Hoy did not hold a position in any of the aforementioned securities.