Post by Dividavi on Apr 13, 2024 23:47:44 GMT
From Yahoo Finance
Thu, April 18 at 8:00PM ET
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GOOG Stock Outlook: Why Now Could Be a Good Time to Load Up On Alphabet
This tech giant could have much more room to run long-term
1d ago · By Chris MacDonald, InvestorPlace Contributor
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Alphabet’s (GOOG) stock price has been a long-term winner, with a trajectory that’s hard to beat.
That said, this stock could have much more room to run, given its AI-related tailwinds.
Here are a few reasons why this is a tech stock worth buying and holding long-term.
Elon Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
GOOG stock - GOOG Stock Outlook: Why Now Could Be a Good Time to Load Up On Alphabet
One of the most successful and prominent companies in the world that investors should not miss out on is Alphabet stock (NASDAQ:GOOG, NASDAQ:GOOGL). Since 2004, which was their IPO year, GOOG stock has been attractive. Due to its constant stock splits, a $100 investment back in the year would be valued at $1.2 million now.
Despite its strong position in search, cloud, and YouTube, Alphabet’s stock trades at a low valuation, with a forward price-earnings ratio of 22.5-times and an EV/EBITDA ratio of 12.5-times, considering its substantial net cash. The company’s underrated AI initiatives, particularly in cloud services, contribute to its long-term appeal, aiding deal expansion.
5 AI Stocks to Buy Before They Skyrocket
While Alphabet may yield different returns than in its early years, it remains a solid investment for potential millionaires.
Arm-Based AI Chip
At Alphabet’s cloud computing event, partnerships and products showcased the potential for Google’s stock. Google unveiled a custom AI chip based on Arm Holding’s architecture to empower cloud customers. Additionally, the event introduced the A3 Mega AI processor utilizing Nvidia’s (NASDAQ:NVDA) H100 technology, with plans to integrate Nvidia’s Blackwell platform by 2025.
Google Cloud’s CEO, Thomas Kurian, unveiled the company’s inaugural custom AI chip, Google Axion, leveraging Arm’s AI architecture. Tailored for high-performance internet data center servers, it’s set for release in late 2024.
Unlike past practices, Alphabet will offer these chips exclusively through cloud services for business rentals. Despite five generations of Tensor processing unit chips since 2015, Google has yet to market them directly to external clients.
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Legendary investor Eric Fry has been right about a lot of stock picks. 41 recommendations that increased over 1,000%. Another 20 that went up more than 500%.
He’s good.
So if he releases a surprise list of 7 companies he expects to win big in 2024, you can’t afford to miss it.
Click here to download this list for free.
Alliance with Palo Alto Networks
Amid the rise of generative AI, tech giants rush to develop training models utilizing proprietary data. Alphabet aims to license its Gemini large language model globally while expanding its cloud computing partnership with cybersecurity firm Palo Alto Networks (NASDAQ:PANW).
The cybersecurity company reiterated its commitment to securing Google Cloud with a generous investment. Palo Alto also named Alphabet their preferred provider for infrastructure services and artificial intelligence.
Palo Alto Network CEO Nikesh Arora is optimistic about the partnership with Alphabet. The company also to expand more of its security services in different sectors.
5 AI Stocks to Buy Before They Skyrocket
More Than Just a Search Engine
Alphabet currently holds the largest market share in search engines worldwide. In 2023, Alphabet reported a whopping 8% increase in revenue compared to 2022, when it had $175 billion in revenue.
In the same year, its cloud business also saw an excellent revenue growth of 26%, surpassing average growth rate. While Google Cloud recently turned profitable, its scale is crucial due to significant fixed costs. YouTube, another critical sector, saw an 8% revenue increase to $31.5 billion, with its premium services boasting over 100 million subscribers and contributing $15 billion.
Though there are concerns about AI disrupting Google’s search dominance, the potential for AI to monetize non-advertised searches presents a significant opportunity for Alphabet’s future growth.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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Thu, April 18 at 8:00PM ET
5
DA
GOOG Stock Outlook: Why Now Could Be a Good Time to Load Up On Alphabet
This tech giant could have much more room to run long-term
1d ago · By Chris MacDonald, InvestorPlace Contributor
Advertisement
Alphabet’s (GOOG) stock price has been a long-term winner, with a trajectory that’s hard to beat.
That said, this stock could have much more room to run, given its AI-related tailwinds.
Here are a few reasons why this is a tech stock worth buying and holding long-term.
Elon Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
GOOG stock - GOOG Stock Outlook: Why Now Could Be a Good Time to Load Up On Alphabet
One of the most successful and prominent companies in the world that investors should not miss out on is Alphabet stock (NASDAQ:GOOG, NASDAQ:GOOGL). Since 2004, which was their IPO year, GOOG stock has been attractive. Due to its constant stock splits, a $100 investment back in the year would be valued at $1.2 million now.
Despite its strong position in search, cloud, and YouTube, Alphabet’s stock trades at a low valuation, with a forward price-earnings ratio of 22.5-times and an EV/EBITDA ratio of 12.5-times, considering its substantial net cash. The company’s underrated AI initiatives, particularly in cloud services, contribute to its long-term appeal, aiding deal expansion.
5 AI Stocks to Buy Before They Skyrocket
While Alphabet may yield different returns than in its early years, it remains a solid investment for potential millionaires.
Arm-Based AI Chip
At Alphabet’s cloud computing event, partnerships and products showcased the potential for Google’s stock. Google unveiled a custom AI chip based on Arm Holding’s architecture to empower cloud customers. Additionally, the event introduced the A3 Mega AI processor utilizing Nvidia’s (NASDAQ:NVDA) H100 technology, with plans to integrate Nvidia’s Blackwell platform by 2025.
Google Cloud’s CEO, Thomas Kurian, unveiled the company’s inaugural custom AI chip, Google Axion, leveraging Arm’s AI architecture. Tailored for high-performance internet data center servers, it’s set for release in late 2024.
Unlike past practices, Alphabet will offer these chips exclusively through cloud services for business rentals. Despite five generations of Tensor processing unit chips since 2015, Google has yet to market them directly to external clients.
You Might Also Like
These 7 Stocks Could Double (or Triple) in 2024
Legendary investor Eric Fry has been right about a lot of stock picks. 41 recommendations that increased over 1,000%. Another 20 that went up more than 500%.
He’s good.
So if he releases a surprise list of 7 companies he expects to win big in 2024, you can’t afford to miss it.
Click here to download this list for free.
Alliance with Palo Alto Networks
Amid the rise of generative AI, tech giants rush to develop training models utilizing proprietary data. Alphabet aims to license its Gemini large language model globally while expanding its cloud computing partnership with cybersecurity firm Palo Alto Networks (NASDAQ:PANW).
The cybersecurity company reiterated its commitment to securing Google Cloud with a generous investment. Palo Alto also named Alphabet their preferred provider for infrastructure services and artificial intelligence.
Palo Alto Network CEO Nikesh Arora is optimistic about the partnership with Alphabet. The company also to expand more of its security services in different sectors.
5 AI Stocks to Buy Before They Skyrocket
More Than Just a Search Engine
Alphabet currently holds the largest market share in search engines worldwide. In 2023, Alphabet reported a whopping 8% increase in revenue compared to 2022, when it had $175 billion in revenue.
In the same year, its cloud business also saw an excellent revenue growth of 26%, surpassing average growth rate. While Google Cloud recently turned profitable, its scale is crucial due to significant fixed costs. YouTube, another critical sector, saw an 8% revenue increase to $31.5 billion, with its premium services boasting over 100 million subscribers and contributing $15 billion.
Though there are concerns about AI disrupting Google’s search dominance, the potential for AI to monetize non-advertised searches presents a significant opportunity for Alphabet’s future growth.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
Technology
Growth Stocks
5 AI Stocks to Buy Before They Skyrocket
7 Stocks That Will Crush the Magnificent 7 in 2024
Legendary investor Louis Navellier just released this year’s most anticipated report: the all-star lineup of 7 stocks poised to beat out the Magnificent Seven and capture outsized gains this year. Enter your email below to get your free copy of “7 Stocks That Will Outperfom the Magnificent Seven in 2024” and a complimentary subscription to Louis Navellier’s Market 360 e-letter. Get your FREE report now!
Email address
Submit
SPONSORED HEADLINES
7 AI Stocks With “Millionaire Maker” Potential in 2024
Elon Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
5 Companies That Could Win Big When the Final Phase of A.I. Begins
“The Final Crypto Bull Run”: 5 Little-Known Cryptos That Could Skyrocket in 2024
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1d ago · By Samuel O'Brient, InvestorPlace Reporter
About InvestorPlace Products Contact Us Help Careers Advertise With Us Disclosures & Disclaimers Privacy Policy Terms of Use Ad Choices Do Not Sell My Personal Information Cookie Preferences DMCA Policy
Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes. Copyright © 2024 InvestorPlace Media, LLC. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201.
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