Alphabet is cheap and set to outperform big tech rivals
Investing isn’t just about finding the best companies to own; it’s about paying an attractive price for them. Today, I have a hard time not seeing $Alphabet(GOOG)$ $Alphabet(GOOGL)$ as the best of all the big tech stocks.
You can see below that it’s the cheapest for the Mag 7 stocks on a price-to-earnings basis (GOOG is in red).
Alphabet is also growing more quickly than $Apple(AAPL)$ $Tesla Motors(TSLA)$ $Amazon.com(AMZN)$ (I removed $NVIDIA Corp(NVDA)$ because its recent growth made the chart unreadable).
The narrative since artificial intelligence hit the scene was that Alphabet’s core businesses would be under threat. We don’t see evidence of that yet.
Even search is growing faster now than when ChatGPT was released.
On top of that, Alphabet has a lot of growth potential in new and emerging businesses.
Google Cloud is now a profitable, high-growth business.
The cloud has been driven by AI, but Alphabet also has Android to distribute AI chips and software. Apple isn’t leading in smartphone AI today; it’s Alphabet that is putting its models and hardware on Android devices to deliver AI at your fingertips.
Then there’s Waymo, which could be a $1 trillion business on its own someday. Waymo is a leader in autonomous driving and has more fully autonomous vehicles on the road today than anyone in the world.
Keep it simple. Alphabet is a huge, profitable company with multiple future growth engines.
I dove into Alphabet’s 10x potential. Shares are up a tidy 25.1% since then, and I think this is still an attractive stock.
https://asymmetric-investing.beehiiv.com/p/the-best-big-tech-stock-today
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.
