NEW YORK (TheStreet) --Alphabet (GOOGL) - Get Report reported better-than-expected 2016 third-quarter results after the market close on Thursday. The Google parent company posted earnings of $9.06 per share, above analysts' expections for $8.63 per share. Revenue grew 20% year-over-year to $22.45 billion, beating expectations of $22.05 billion.

"I was happy they grew on an FX adjusted basis at 23% that compares to 25% last quarter," Piper Jaffray senior research analyst Gene Munster said during this morning's "Squawk Box" on CNBC.

The company was able to "power through" an additional link in their mobile results which added to the challenges faced in the September quarter, he added.

"It was all about machine learning and artificial intelligence, and ultimately some of those things are going to make you use Google more and so I think there's reason for optimism beyond just the near-term for Google," Munster noted.

Shares of Alphabet opened high on Friday.

(Alphabet is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trialhere.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A.

Alphabet's strengths include its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels.

You can view the full analysis from the report here: GOOGL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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