Red and Green
Alphabet , the company known for their Google search and YouTube, has come down quite a bit over the last couple of weeks. The stock is down -25% from the ATH, now trading at $156.
Over a longer timeframe it has shown outperformance vs the S&P index, gaining almost +500% within a decade.
Their Business
They have a quite diversified business with also Cloud Services but the major revenue still comes from their search Engine. Ad revenue both on Google but also on YouTube are their main stream of income which is both a strength and a risk. But they are working with efforts also in AI (Genesis) and Quantum Computing.
Cheap or not?
If we look at the P/E ratio it is below 20 now, which is not expensive at all for a growth company like Alphabet. They delivered revenue gains of +16% annually over the last five years and increased their EPS +27% pa. within that same timeframe. Last year numbers were a bit lower than expected with revenue only growing +13% and they plan to invest heavily in 2025 into their AI infrastructure. So this is something to watch.
In my view
Alphabet is getting interesting now from an anticyclical point of view. I might start stacking since I believe, that their position will remain strong. They are working in a lot of promising areas as AI, Quantum Computing or Content and their Ad business is still one of the best in the world.
What do you think, guys? Alphabet worth a buy?
I have an speculative position on alphabet
Ah, what price did you enter?
154.95
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I believe Alphabet’s AI and quantum computing investments could be a major catalyst, even if ad revenue dominates for now. The current valuation looks tempting for a long term position though
There is always a lot of ups and downs in these because Google is known for its technology.