While the search engine Google continues to be a large portion of the company, Squali noted that the nonsearch business is also growing significantly. This includes such initiatives as YouTube and its DoubleClick Bid Manager for advertisers.
Squali estimated that nonsearch already represents a $10 billion portion of the business that did not exist six years ago.
He added that Google is in a very unique position compared to companies like Microsoft. If a customer is not happy with using the Google search engine, they can simply switch to a competitor like Yahoo or Bing with no effective cost to the customer. However, that is not true for a piece of Microsoft software, he said.
Media analyst James Dix of Wedbush Securities also questioned whether Alphabet's growth will be sustainable for the future.
"With Alphabet you have a company which is 90 percent market share in mobile search. That is a great place to be right now. But in 10 years, what's mobile search going to look like?" Dix asked on "Power Lunch."
With the first half of 2016 in the rearview mirror, investors are now on the hunt for growth. This was evident in the signs of rotation as the metals, financial and technology segments have become the new leaders of the market, and utilities, telecom and consumer staples have lagged. Alphabet was up almost 4 percent for the year as of Wednesday.
What stood out to Squali about recent earnings for Alphabet, Amazon and Facebook, was that the growth rate of these technology giants has accelerated in the last couple of quarters.
"That is very unusual for companies to dominate their space," he said.