Is Alphabet a Better Buy Than Spotify Technology?
Spotify Technology fell -12% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Alphabet gives you more. Alphabet (GOOGL) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Spotify Technology (SPOT) stock, suggesting you may be better off investing in GOOGL
- GOOGL’s quarterly revenue growth was 18.0%, vs. SPOT’s 6.8%.
- In addition, its Last 12 Months revenue growth came in at 15.1%, ahead of SPOT’s 9.7%.
- GOOGL leads on profitability over both periods – LTM margin of 32.0% and 3-year average of 30.5%.
These differences become even clearer when you look at the financials side by side. The table highlights how SPOT’s fundamentals stack up against those of GOOGL on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| SPOT | GOOGL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 40.6 | 32.7 | GOOGL |
| Revenue Growth | |||
| Last Quarter | 6.8% | 18.0% | GOOGL |
| Last 12 Months | 9.7% | 15.1% | GOOGL |
| Last 3 Year Average | 13.6% | 12.5% | SPOT |
| Operating Margins | |||
| Last 12 Months | 12.8% | 32.0% | GOOGL |
| Last 3 Year Average | 6.0% | 30.5% | GOOGL |
| Momentum | |||
| Last 3 Year Return | 225.0% | 228.6% | GOOGL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See detailed fundamentals on Buy or Sell GOOGL Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SPOT Return | -26% | -66% | 138% | 138% | 30% | -15% | 58% | ||
| GOOGL Return | 65% | -39% | 58% | 36% | 66% | 12% | 303% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 5% | 91% | ||
| Monthly Win Rates [3] | |||||||||
| SPOT Win Rate | 33% | 17% | 83% | 83% | 58% | 50% | 54% | ||
| GOOGL Win Rate | 83% | 25% | 67% | 67% | 75% | 50% | 61% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| SPOT Max Drawdown | -35% | -70% | 0% | 0% | 0% | -29% | -22% | ||
| GOOGL Max Drawdown | -2% | -42% | -2% | -6% | -23% | -13% | -15% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 4/28/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
Still not sure about SPOT or GOOGL? Consider portfolio approach.
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