Alphabet Inc (GOOG &GOOGL) a buy despite a sharp drop

Google's stock has been under pressure recently, with a notable drop following its Q4 2024 earnings report released on February 4, 2025. The report showed revenue of $96.47 billion, slightly below the expected $96.56 billion, leading to a more than 9% drop in after-hours trading. Despite this, earnings per share of $2.15 beat estimates of $2.13, and full-year 2024 revenue reached $350 billion, marking a 14% increase from 2023's $307.394 billion (Alphabet Revenue 2010-2024 | MacroTrends). This growth was driven by strong performances in search, YouTube ads ($10.47 billion vs. $10.23 billion expected), and Google Cloud ($11.96 billion vs. $12.19 billion expected), though cloud revenue disappointed.

Valuation metrics suggest Google may be undervalued currently. The price-to-earnings (P/E) ratio, a key indicator, stands at approximately 20-22 as of recent data, compared to a 10-year historical average of 28.35

Despite these strengths, significant risks exist, particularly legal and regulatory. In August 2024, a U.S. judge ruled Google violated antitrust laws by maintaining an illegal search monopoly, with remedies proposals suggesting potential business changes, including possible breakups

Personally I feel Google is a steal at such price with strong cashflow and low PE ratio compared to the other Mag 7 stocks

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Comments

JimmyHua
03-19
JimmyHua
valuable analysis. thank you.
KevinKelly
03-19
KevinKelly
BUY NOW! 📈

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The report showed revenue of $96.47 billion, slightly below the expected $96.56 billion, leading to a more than 9% drop in after-hours trading. Despite this, earnings per share of $2.15 beat estimates of $2.13, and full-year 2024 revenue reached $350 billion, marking a 14% increase from 2023's $307.394 billion (Alphabet Revenue 2010-2024 | MacroTrends). This growth was driven by strong performances in search, YouTube ads ($10.47 billion vs. $10.23 billion expected), and Google Cloud ($11.96 billion vs. $12.19 billion expected), though cloud revenue disappointed.</p>\n<p><br></p>\n<p>Valuation metrics suggest Google may be undervalued currently. The price-to-earnings (P/E) ratio, a key indicator, stands at approximately 20-22 as of recent data, compared to a 10-year historical average of 28.35</p>\n<p>Despite these strengths, significant risks exist, particularly legal and regulatory. In August 2024, a U.S. judge ruled Google violated antitrust laws by maintaining an illegal search monopoly, with remedies proposals suggesting potential business changes, including possible breakups</p>\n<p>Personally I feel Google is a steal at such price with strong cashflow and low PE ratio compared to the other Mag 7 stocks</p>\n<p><br></p>\n<p><br></p>\n<p><br></p>\n<p><br></p></body></html>","htmlText":"<html><head></head><body><p>Google's stock has been under pressure recently, with a notable drop following its Q4 2024 earnings report released on February 4, 2025. The report showed revenue of $96.47 billion, slightly below the expected $96.56 billion, leading to a more than 9% drop in after-hours trading. Despite this, earnings per share of $2.15 beat estimates of $2.13, and full-year 2024 revenue reached $350 billion, marking a 14% increase from 2023's $307.394 billion (Alphabet Revenue 2010-2024 | MacroTrends). This growth was driven by strong performances in search, YouTube ads ($10.47 billion vs. $10.23 billion expected), and Google Cloud ($11.96 billion vs. $12.19 billion expected), though cloud revenue disappointed.</p>\n<p><br></p>\n<p>Valuation metrics suggest Google may be undervalued currently. The price-to-earnings (P/E) ratio, a key indicator, stands at approximately 20-22 as of recent data, compared to a 10-year historical average of 28.35</p>\n<p>Despite these strengths, significant risks exist, particularly legal and regulatory. In August 2024, a U.S. judge ruled Google violated antitrust laws by maintaining an illegal search monopoly, with remedies proposals suggesting potential business changes, including possible breakups</p>\n<p>Personally I feel Google is a steal at such price with strong cashflow and low PE ratio compared to the other Mag 7 stocks</p>\n<p><br></p>\n<p><br></p>\n<p><br></p>\n<p><br></p></body></html>","text":"Google's stock has been under pressure recently, with a notable drop following its Q4 2024 earnings report released on February 4, 2025. The report showed revenue of $96.47 billion, slightly below the expected $96.56 billion, leading to a more than 9% drop in after-hours trading. Despite this, earnings per share of $2.15 beat estimates of $2.13, and full-year 2024 revenue reached $350 billion, marking a 14% increase from 2023's $307.394 billion (Alphabet Revenue 2010-2024 | MacroTrends). This growth was driven by strong performances in search, YouTube ads ($10.47 billion vs. $10.23 billion expected), and Google Cloud ($11.96 billion vs. $12.19 billion expected), though cloud revenue disappointed. Valuation metrics suggest Google may be undervalued currently. The price-to-earnings (P/E) ratio, a key indicator, stands at approximately 20-22 as of recent data, compared to a 10-year historical average of 28.35 Despite these strengths, significant risks exist, particularly legal and regulatory. In August 2024, a U.S. judge ruled Google violated antitrust laws by maintaining an illegal search monopoly, with remedies proposals suggesting potential business changes, including possible breakups Personally I feel Google is a steal at such price with strong cashflow and low PE ratio compared to the other Mag 7 stocks","highlighted":1,"essential":1,"paper":2,"likeSize":32,"commentSize":2,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/414859571232856","repostId":0,"isVote":1,"tweetType":1,"viewCount":1259,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["GOOGL","GOOG"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":true,"length":1130,"optionInvolvedFlag":false,"xxTargetLangEnum":"ORIG"},"commentList":[{"id":415122647498960,"commentId":"415122647498960","gmtCreate":1742350575909,"gmtModify":1742350580880,"authorId":10000000000011856,"author":{"id":10000000000011856,"idStr":"10000000000011856","authorId":10000000000011856,"name":"JimmyHua","avatar":"https://community-static.tradeup.com/news/7f17d426377c791ac5cdfef91fbf8408","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":414859571232856,"objectIdStr":"414859571232856","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"valuable analysis. thank you.","text":"valuable analysis. thank you.","html":"valuable analysis. thank you.","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0,"disclaimerType":0},{"id":415033908523104,"commentId":"415033908523104","gmtCreate":1742350901322,"gmtModify":1742377012275,"authorId":9000000000000174,"author":{"id":9000000000000174,"idStr":"9000000000000174","authorId":9000000000000174,"name":"KevinKelly","avatar":"https://static.tigerbbs.com/0965d3709fcccd732467fba87aa4ea6e","vip":8,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":414859571232856,"objectIdStr":"414859571232856","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"BUY NOW! 📈","text":"BUY NOW! 📈","html":"BUY NOW! 📈","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0,"disclaimerType":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/414859571232856"}