Tech stocks have taken a hit, but Microsoft and Alphabet show strong long-term growth potential.

From Nasdaq: 2024-08-10 06:30:00

Tech stocks have taken a hit recently, with the Nasdaq falling around 10% in the last month. However, long-term growth potential remains strong. Microsoft and Alphabet are solid options for investors due to their dominance in the tech industry.

Microsoft’s recent earnings beat expectations, with a 15% rise in revenue in Q4 2024. Despite a slight miss in the intelligent-cloud segment, Microsoft’s Azure and other cloud-services sales rose 29%. The company’s slow but steady growth makes it an attractive long-term investment.

Alphabet’s Q2 2024 results exceeded Wall Street estimates, with a 14% increase in revenue year over year. Google Cloud’s revenue spiked by 29%, positioning Alphabet to challenge Microsoft and Amazon in the cloud space. Despite recent stock declines, Alphabet’s strong position in tech makes it a compelling buy.

In a comparison of Microsoft and Alphabet, Alphabet emerges as the better buy based on valuation. Alphabet’s shares are trading at a lower P/E and P/S ratio compared to Microsoft’s. Additionally, Alphabet’s valuations are below their 10-year averages, indicating potential for growth.

Considering long-term investment opportunities, Alphabet appears to be the better stock to buy at the moment. Investors seeking growth and stability in the tech sector may find Alphabet to be a more attractive option than Microsoft.



Read more at Nasdaq: Better Tech Stock: Microsoft vs. Alphabet