From Nasdaq: 2025-06-09 06:30:00

Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) is currently the least favored stock on Wall Street, despite its strong growth in revenue and earnings in the AI and cloud computing sectors. With a low P/E ratio compared to its large-cap tech peers, Alphabet may be a hidden gem for investors looking for value.

Alphabet’s financial performance remains strong, with revenue growing 14% year over year to $90.2 billion. The company’s diversified revenue streams, including YouTube advertising and Google Cloud, contribute to its overall growth. Alphabet’s revenue has surged 117% over the past five years, showcasing its resilience in the face of competition in the AI sector.

Google Cloud, a key division of Alphabet, is experiencing significant growth with revenue increasing by 28% year over year. The division’s profitability is on the rise, with operating income reaching $2.2 billion in the first quarter of 2025. Google Cloud’s growth potential could make it a major contributor to Alphabet’s overall operating income in the future.

Alphabet stands out as the cheapest among the “Magnificent Seven” tech stocks, with a lower P/E ratio and faster revenue growth compared to its peers. The company’s strong capital returns to shareholders through buybacks and dividends further enhance its appeal to investors. With a combination of value, growth, and shareholder returns, Alphabet is positioned as a top stock to buy now.

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Read more at Nasdaq: Is Google the Cheapest “Magnificent Seven” Stock You Can Buy Today?