Google - I like this in 2024 ? Read & decide.
As we welcome 2024 into our fold, the thought as an investor has to endure (see below) seems daunting all over again:
12 monthly official reports - jobs, inflation, GDP etc...
4 quarterly earnings reports - for every stock investment.
Any other matters that may throw a curve ball.
Having been in the market for a while, I realized that if we take to what each company says about their outlook, prospect, we would be taken for a ride, at least 60% of the time.
This is because the big picture painted by every company’s CEO, CFO, CTO will always be rosy; no matter what.
Highlight of 2023.
One of the highlights in 2023 hands down was the rise of Artificial Intelligence (AI).
When OpenAI introduced ChatGPT to the world in November 2022, I don’t think anyone could have fathomed the accelerated pace with which AI gained traction and made inroads in the IT sphere.
The ascend of the AI-laced IT stocks did not go unnoticed.
In May 2023, Bank of America analyst Michael Hartnett used the Hollywood movie (of the same title) when he commented on the 7 giant IT-stocks; officially birthing the new terminology but also charting the rise of these 7 stocks throughout 2023.
The Magnificent 7’s strident gains in 2023:
$Apple(AAPL)$ : +53.94% gain.
$Microsoft(MSFT)$ : +56.96% gain.
Alphabet: +57.11% gain.
$Amazon.com(AMZN)$ : +77.04% gain.
Tesla: +129.68% gain.
Meta Platform: +183.73% gain.
Nvidia: +245.95% gain.
With 2023 officially behind us, how should we navigate the new 12 months, when it comes to the Magnificent 7?
Out of the Magnificent 7 stocks, $Alphabet(GOOG)$ will be one that I will bet my bottom dollar on.
It is not that the others are not as good etc..
It’s just that I see there are more upsides for Google when the 7 stocks are lined up for an honest, investment inspection.
Like what ?
(A) Artificial Intelligence - research & development.
Google is devoting its resources in the following AI disciplines:
Multimodal AI.
Explainable AI (XAI).
Generative AI for Creative Applications.
(B) Semiconductors.
Will you be “glad” to know that Google is also “simultaneously” making inroads in the race for chip-supremacy? Below are some of the activities undertaken. (see below)
Custom AI Chips.
Neuromorphic Chips.
Chip design Automation with AI.
(C) Google Cloud / Computing.
Google cloud - the one area that for years was unprofitable until 2023 when it was finally in the “green”.
This is the revenue segment in Google, that Wall Street seems to have issues with.
This is because Wall Street compares Google’s cloud earnings against Amazon Web services and Microsoft’s Azure. Admittedly, the two leaders are way ahead in terms of profitability.
Despite the backlash, Google is marching to its own tune and development:
Anthos Migration Tools.
Vertex AI and Dataflow.
Hybrid and Multi-Cloud Solutions.
(D) Quantum Computing.
Quantum computing will be the next frontier for IT, after AI. It is a revolutionary method of processing data that is way more powerful than traditional computing.
And Google is right in the heart of it.
Its area of development includes:
Error Correction Techniques.
Hybrid Quantum/Classical Computing.
Quantum Algorithms for Specific Applications.
Although at the moment it is not the “leader” in the quantum race ( $IBM(IBM)$ is); it is not too far away from the leader of the pack.
(E) Autonomous Driving.
Waymo, Google’s spinoff company has achieved a Level 4 for its autonomous driving capability.
It is believed that in the US, Waymo is the only company awarded a Level 4 labelling versus Tesla full service driving (FSD) that is still in its stalled state of Level 2 - basic self driving capabilities.
Above 5 development areas are why I feel that Google will be the one company that I would invest next, when the entry price is right.
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Do you think it is a necessary “chore” that every investor needs to take partake in knowing the official report and quarterly earnings.
Do you think Google is the “best” of the Magnificent Seven to invest in 2024?
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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