Alphabet: Why GOOGL Is Magnificent 7’s Most Overlooked Stock
There is no overstating how volatile the US stock market has been this year. Uncertainty appears to be the theme of the calendar year, as Wall Street has had to navigate a bunch of it. Yet, amid shares rising and falling, Alphabet (GOOGL) remains one of the Magnificent 7’s most overlooked stocks.
The company has been in the limelight for much of the year as it faces increased regulatory scrutiny. However, that doesn’t deny that it is in perhaps the strongest position of any of the world’s largest companies. Moreover, it is yet to be treated as such by most investors compared to its peers.
Also Read: Alphabet Revenue May Dip by 56%: Can GOOGL Reclaim $200?
Alphabet Remains Top Magnificent 7 Stock People Aren’t Paying Close Attention To
The US stock market started the week on a strong note, with potential trade deals driving shares slightly higher. However, that shifted in a big way Wednesday. Indeed, the top three indexes fell across the board as issues surrounding the national debt crisis had led many investors to panic.
That development doesn’t detract from the overarching potential in the market this year. Although companies like Nvidia (NVDA) and a resurging Tesla (TSLA) have gotten attention, one is being forgotten. Indeed, Alphabet (GOOGL) is firmly stated as the most overlooked stock of the Magnificent 7.
Also Read: Morgan Stanley Backs Alphabet Before Earnings Wave, Sees 29% Upside
The Google parent company is currently selling at a P/E ratio of 19. Moreover, it stands as a top AI development firm, first utilizing the tech more than 24 years ago. Additionally, its financials are incredibly strong, with $75 billion in free cash flow over the last year and $95 billion in liquidity.
There are still questions, specifically regarding how it stands in the AI space. The arrival of OpenAI’s ChatGPT changed everything, which knocked Google’s market share to below 90% for the first time ever, according to a recent report.
However, Alphabet is far more than a company that relies solely on what Google can provide it. Its advertising business has skyrocketed. Specifically, it constituted 74% of its revenue in Q1, while its Google Cloud offering jumped to a revenue share of 14%. Altogether, it is showing the diversification and reach necessary to be one big play away from skyrocketing among its mega-cap peers.
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Alphabet: Why GOOGL Is Magnificent 7’s Most Overlooked Stock
There is no overstating how volatile the US stock market has been this year. Uncertainty appears to be the theme of the calendar year, as Wall Street has had to navigate a bunch of it. Yet, amid shares rising and falling, Alphabet (GOOGL) remains one of the Magnificent 7’s most overlooked stocks.
The company has been in the limelight for much of the year as it faces increased regulatory scrutiny. However, that doesn’t deny that it is in perhaps the strongest position of any of the world’s largest companies. Moreover, it is yet to be treated as such by most investors compared to its peers.
Also Read: Alphabet Revenue May Dip by 56%: Can GOOGL Reclaim $200?
Alphabet Remains Top Magnificent 7 Stock People Aren’t Paying Close Attention To
The US stock market started the week on a strong note, with potential trade deals driving shares slightly higher. However, that shifted in a big way Wednesday. Indeed, the top three indexes fell across the board as issues surrounding the national debt crisis had led many investors to panic.
That development doesn’t detract from the overarching potential in the market this year. Although companies like Nvidia (NVDA) and a resurging Tesla (TSLA) have gotten attention, one is being forgotten. Indeed, Alphabet (GOOGL) is firmly stated as the most overlooked stock of the Magnificent 7.
Also Read: Morgan Stanley Backs Alphabet Before Earnings Wave, Sees 29% Upside
The Google parent company is currently selling at a P/E ratio of 19. Moreover, it stands as a top AI development firm, first utilizing the tech more than 24 years ago. Additionally, its financials are incredibly strong, with $75 billion in free cash flow over the last year and $95 billion in liquidity.
There are still questions, specifically regarding how it stands in the AI space. The arrival of OpenAI’s ChatGPT changed everything, which knocked Google’s market share to below 90% for the first time ever, according to a recent report.
However, Alphabet is far more than a company that relies solely on what Google can provide it. Its advertising business has skyrocketed. Specifically, it constituted 74% of its revenue in Q1, while its Google Cloud offering jumped to a revenue share of 14%. Altogether, it is showing the diversification and reach necessary to be one big play away from skyrocketing among its mega-cap peers.
Read More