Market crashes don’t happen often. But when they do, they tend to separate strong businesses from the rest of the market. In good times, almost everything can go up. But in downturns, investors quickly shift their focus to companies that can hold up under tough conditions.
That’s why we must have a watch list stock ready to buy when the market offers that opportunity. And one company that stands out as a potential watch list candidate is Alphabet (GOOG 0.21%).
Image source: Getty Images.
Why is Alphabet more resilient than others?
One of the key factors investors consider when evaluating a company is the resilience of its business model. That usually comes from an edge it has, such as a unique product, network effects, or just cost advantages.
In the case of Alphabet, it has many attributes that make it a great business. Take Google Search, for example. Google Search isn’t just another advertising platform. It’s the most widely used search platform globally, with 91% market share, giving it enormous network effects and economies of scale.
Moreover, its business model is built around intent. When someone searches for a product, service, or solution, they are already close to making a decision. That makes search advertising one of the most effective forms of digital advertising and often one of the last areas businesses cut, even during downturns.
Today’s Change
(-0.34%) $-1.10
Current Price
$317.39
Key Data Points
Market Cap
$3.9T
Day’s Range
$316.32 – $321.83
52wk Range
$146.10 – $349.00
Volume
14M
Avg Vol
34M
Gross Margin
59.68%
Dividend Yield
0.26%
More than just search advertising
While Alphabet’s search engine is a major source of revenue, it’s not the only source of income for the tech giant. It also owns some of the best digital advertising assets globally, including YouTube, Android, and Chrome. On top of that, the company is also a leading player in the cloud computing sector, especially today, as the rise of artificial intelligence (AI) is driving a massive surge in computing capacity.
That business model provides the company with an unusually advantageous position, combining both stability and growth. On one hand, its core advertising business generates tens of billions in cash flow each year. On the other hand, its newer segments — such as AI and other moonshot projects — provide additional growth opportunities.
That combination creates a balance that few companies can match, providing enormous flexibility during the good and, particularly, the bad times.
The risks investors shouldn’t ignore
There’s no doubt that Alphabet is among the best quality companies globally. Even high-quality businesses still face challenges.
One thing is that the rise of AI could change the digital advertising industry, especially as consumers gradually spend more time on alternative products like ChatGPT. While Google Search has countered with its own AI chat service powered by Gemini, there’s no guarantee newcomers won’t slowly erode the incumbent’s market share.
Besides, while Alphabet has tried to diversify its revenue sources for years, it is still, by and large, an advertising platform at its core. For perspective, advertising accounted for 72% of its revenue in the fourth quarter of 2025. Global advertising revenue does fluctuate during periods of a weak economy, posing a risk of slower or muted growth.
In other words, as mighty as Alphabet is, it is not completely immune to a massive downturn.
What does it mean for investors?
Market crashes are uncomfortable, but they often create the best long-term opportunities. The key is knowing which businesses are worth watching when that moment comes.
Alphabet may not be the most exciting stock in a downturn. It may not even be the most profitable stock to buy during that period, since other riskier names could perform better. But it’s the kind of company investors often feel comfortable buying, given its business model’s strengths. Also, most investors would wish (by then) that they had paid more attention to the company earlier.
All told, if there’s just one stock that you can have on your market-crash watch list, it should be Alphabet.
