We came across a bullish thesis on Alphabet Inc. (GOOG) on Value Investing Subreddit Page by LocoJorge7. In this article, we will summarize the bulls’ thesis on GOOG. Alphabet Inc. (GOOG)’s share was trading at $186.53 as of Dec 10th. GOOG’s trailing and forward P/E were 24.74 and 21.01 respectively according to Yahoo Finance.
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Alphabet (GOOG) stands out as a compelling investment opportunity due to its dominance across multiple industries and a strong foundation for future growth. Google Cloud, with an 11% global market share, has seen rapid expansion from 6% just a few years ago. Generating $33.1 billion in revenue in 2023, it continues to grow its influence while uniquely operating without dependence on Nvidia, showcasing strategic independence in the cloud ecosystem.
In quantum computing, Google is a pioneer with its “Willow” chip, which promises breakthroughs capable of solving problems in mere minutes that would otherwise take supercomputers an inconceivable length of time. This technological leadership underscores Alphabet’s long-term potential in groundbreaking innovation.
Google Search remains the unrivaled leader, holding over 90% of the global search engine market share. Despite emerging competitors, Google’s dominance ensures billions rely on its ecosystem daily, cementing its role as an indispensable service. Complementing this is YouTube, the world’s largest streaming platform with over 2.5 billion monthly active users and $29 billion in ad revenue in 2023, reinforcing Alphabet’s grip on the digital advertising space.
Waymo, Alphabet’s autonomous driving venture, has solidified its position as the leader in self-driving technology, with over 20 million miles driven autonomously on public roads. This positions Alphabet at the forefront of a transformative industry, ahead of competitors like Tesla. Moreover, Google Chrome, commanding nearly 65% of the web browser market, continues to dominate due to its seamless integration with Google services.
While technological advancements may introduce volatility, Alphabet’s diverse portfolio, market leadership, and relentless innovation make it a standout investment. With dominance across cloud computing, search, streaming, and autonomous driving, Alphabet is not just playing the game but setting the rules in an increasingly digital world.
Alphabet Inc. (GOOG) is on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 160 hedge fund portfolios held GOOG at the end of the third quarter which was 165 in the previous quarter. While we acknowledge the risk and potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
