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Is Google the Cheapest "Magnificent Seven" Stock You Can Buy Today?
Wall Street's least favorite "Magnificent Seven" stock may be Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now if its price-to-earnings (P/E) ratio is any indicator. The large technology company -- and parent of Google -- is leaping forward into the artificial intelligence (AI) revolution with open arms, growing revenue at a double-digit rate, and seeing an earnings inflection at its cloud division. And yet, it trades at the cheapest P/E ratio of all of its large-cap technology stocks brethren.Let's dive in and analyze the parent company of Google, Gemini, YouTube, and Google Cloud and see whether this discounted earnings ratio makes the stock a buy right now.There is a huge narrative around Alphabet and Google losing in AI to the likes of OpenAI. So far, this has not shown up in Alphabet's financial performance. Last quarter, Alphabet's revenue grew 14% year over year in constant currency to $90.2 billion, with 10% growth from Google Search revenue that is supposedly being disrupted by AI start-ups. So far, that hasn't been the case with Alphabet.Continue reading
Wall Street's least favorite "Magnificent Seven" stock may be Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now if its price-to-earnings (P/E) ratio is any indicator. The large technology company -- and parent of Google -- is leaping forward into the artificial intelligence (AI) revolution with open arms, growing revenue at a double-digit rate, and seeing an earnings inflection at its cloud division. And yet, it trades at the cheapest P/E ratio of all of its large-cap technology stocks brethren.
Let's dive in and analyze the parent company of Google, Gemini, YouTube, and Google Cloud and see whether this discounted earnings ratio makes the stock a buy right now.
There is a huge narrative around Alphabet and Google losing in AI to the likes of OpenAI. So far, this has not shown up in Alphabet's financial performance. Last quarter, Alphabet's revenue grew 14% year over year in constant currency to $90.2 billion, with 10% growth from Google Search revenue that is supposedly being disrupted by AI start-ups. So far, that hasn't been the case with Alphabet.
