not vested
Alphabet (GOOG)
Alongside Facebook, technology giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) struggled in 2019 as the ethics and mechanics behind its digital advertising business were called into question. GOOG stock dropped nearly 25% in late 2018.
It has been up, up and away ever since Christmas Eve. The core growth narrative here remains robust, thanks to continued strength in the digital advertising business.
Margins are starting to improve again. The nascent but rapidly growing cloud- and AI-related businesses are scaling nicely, and have tons of firepower left.
In the big picture, Alphabet is at the core of almost everything consumers do on the internet. As such, this company has second-to-none staying power in the digital economy, and the digital economy continues to rapidly expand globally. This means Alphabet will likely remain a 15-20% revenue grower with stable margins over the next several years.
That growth profile is undervalued in a stock with a 20X forward multiple. As such, GOOG stock is reasonably undervalued here, against the backdrop of a rising market. That combination will lead to GOOG stock rallying in 2019.
Source: Investor Place