Alphabet (GOOG, GOOGL) 03 (Aug 24 - Dec 27)

[winston]

vested

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has tumbled 18.4% in the past month. This is mainly due to fears that AI chatbots will have a negative impact on Google’s search volume.

However, it seems like an overreaction since Google itself is making some solid progress with its own AI models.

It also trades at just 19 times forward earnings, which is pretty cheap compared to most other AI stocks.

Alphabet owns the world’s two most popular websites by traffic volume, and analysts expect its EPS to grow by 11.8% this year, along with an 11.4% revenue growth.

I believe GOOG stock is a solid long-term buy as the AI hype rally didn’t drive it up to dangerously overvalued levels, and any pullback is unlikely to be as extreme.

The consensus price target of $209.13 implies 23.21% upside.

Source: Money Morning

[winston]

not vested

Alphabet: Historical Discount and Huge Growth Opportunities

Alphabet remains a fundamental pillar of the digital economy, with its core business, Google Search, continuing to deliver steady sales and earnings growth despite investor concerns that AI could disrupt traditional search volume.

In reality, Alphabet is proactively integrating AI into its ecosystem, with early data suggesting that AI-powered search summaries are enhancing user engagement rather than eroding traffic.

The company has also teased a next-generation AI search product, reinforcing its commitment to staying at the forefront of innovation in online search.

Beyond search, Alphabet has several underappreciated growth engines, the most notable being Waymo, its self-driving car subsidiary.

While many competitors in autonomous driving are still in testing phases, Waymo is already operating at scale, providing over 200,000 rides per week. As the technology advances and expands into more cities, Waymo could become a major profit center that is barely factored into Alphabet’s current valuation.

Alphabet is also a key player in cloud computing, where Google Cloud is growing at an impressive 30% annually. With increasing demand for AI-driven workloads and enterprise cloud services, Google Cloud is becoming an increasingly important driver of the company’s overall revenue growth.

Despite these powerful long-term growth catalysts, Alphabet is trading at a historical discount. The stock’s 10-year median forward P/E ratio is 25.8x, yet it currently trades at just 19.4x forward earnings.

With earnings expected to grow at 15.5% annually over the next three to five years, this valuation compression presents a compelling opportunity for investors looking for both stability and upside.

Source: Zack's

[winston]

vested

Nasdaq Correction: Why I Took Advantage of a 20% Sell-Off to Buy More of This Magnificent 7 Stock.

by Matt DiLallo

Forward P/E ratio of a little more than 18 times is also cheaper than the broader market.

Revenue rose 15% last year to $350 billion, while its net income surged more than 35% to $100 billion.

Google Cloud revenues surged 30% in that quarter to $12 billion.

It plans to invest $75 billion into capital expenditures this year, up from $52.5 billion last year.

Source: The Motley Fool

https://finance.yahoo.com/news/nasdaq-c ... 00693.html

[winston]

vested

Alphabet

YouTube video streaming platform by itself is the fourth largest.

Google generally only serves ads on about 20% of its queries, so ads in AI overviews would be an untapped realm to expand into.

The company also has a stand-alone Gemini app that competes with the likes of ChatGPT and Anthropic's Claude.

The company recently made a big breakthrough in quantum computing with its Willow chip, where it was able to reduce errors while scaling up.

Meanwhile, its Waymo robotaxi business has taken the lead in the space, with it being the only company to offer paid rides in the U.S.

Source: TMF

[winston]

vested

Alphabet

Inclusive of Google, YouTube, and Google Network, 75% of its $96.5 billion in fourth quarter sales trace back to advertising.

If businesses become skittish about the U.S. or global economy, it could directly affect Alphabet’s core revenue driver.

There’s also concern about how the Trump administration will approach regulating big tech companies. The U.S. Department of Justice is calling for a breakup of Alphabet, which would see the company divest its leading search engine, Google.

Once again, while these headwinds are headline-grabbing for the moment, they aren’t altering the company’s aggregate long-term growth projections.

Alphabet’s foundation continues to be its advertising platforms. Even with plenty of competition, Google has maintained an 89% to 93% monthly share of global internet search over the trailing decade.

Lengthy periods of economic expansion suggest Google’s ad-pricing power will be strong, more often than not.

But what’s most exciting about Alphabet is its cloud service infrastructure platform, Google Cloud.

Tech firm Canalys estimates Google Cloud has secured an 11% share of worldwide cloud-service spend, as of the fourth quarter. This is excellent news considering businesses are still in the very early stages of ramping up their cloud spending and incorporating artificial intelligence (AI) into the mix.

Google Cloud is a significantly higher-margin segment that’ll be a key cash-flow driver in the latter-half of the decade.

While the stock market is historically pricey, the recent dip in Alphabet’s stock has lowered its forward P/E ratio to just 16. This represents a 28% discount to its average forward-year earnings multiple over the trailing half-decade.

Source: TMF

[winston]

Google-parent Alphabet is in advanced talks to acquire cybersecurity startup Wiz for around US$30 billion, a source familiar with the matter said on Monday (Mar 17), potentially marking the tech giant’s largest deal to date.

Source: Phillips

[behappyalways]

Alphabet's biggest deal: spending 1 trillion to acquire Israeli startup Wiz to catch up with Microsoft and Amazon.
Google's big acquisition strengthens its cybersecurity capabilities!

Alphabet最大手筆 花1兆併購以色列新創Wiz 追趕微軟.亞馬遜 谷歌大併購強化資安戰力!｜非凡財經新聞｜20250319

https://m.youtube.com/watch?v=FCNpURjYRPQ

[behappyalways]

$GOOGL's largest acquisitions
https://x.com/Mayhem4Markets/status/1903220464702591096

[winston]

vested

JPMorgan Cuts Alphabet Price Target Amid Trump Tariffs. Is Google Stock A Buy?
FacebookXLinkedInShare Licensing

by REINHARDT KRAUSE

"We now project 2025 reported revenue Search growth of 3% (currency and hedging neutral), down from 9% prior and YouTube ads growth of 2%, down from 11%.

We expect Google cloud to prove more resilient on stronger secular growth. We now model 24% cloud growth, down from 26%."

Source: IBD

https://www.investors.com/news/technolo ... src=A00220

[behappyalways]

'Betrayed, That's The Word': Small Business Owners Reel as Google AI Destroys Google Search
https://www.zerohedge.com/technology/be ... gle-search