What AI Bubble? Alphabetâs Business Is Booming (NASDAQ:GOOG)
Summary
- Alphabet remains a buy, as AI bubble fears are overblown; the company shows robust fundamentals and accelerating growth across all business segments.
- Google Search is regaining market share, while Google Cloud Platform is now Alphabetâs fastest-growing segment, winning enterprise AI customers and market share.
- Valuation remains attractive at 21x forward earnings, with 14% upside potential as market expectations for earnings and revenue growth improve.
- Risks include potential slowdown in enterprise AI/cloud spending and competitive pressures, but current data supports continued strength and upside for Alphabet.
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Investment Thesis
The US Fedâs Jerome Powell saved the markets from what could have been a disastrous week, especially for tech stocks.
Markets opened for business last week with deep consternation about the possibility of an AI bubble bursting soon, compliments
Analystâs Disclosure:I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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