Alphabet and Microsoft, both with market caps exceeding $3 trillion, are in the spotlight as Alphabet nears a $4 trillion valuation. Alphabet relies heavily on advertising revenue, while Microsoft’s business spans cloud computing, gaming, and more. Despite Alphabet’s faster growth, Microsoft’s steadier growth and potential in cloud computing make it a strong contender.
Alphabet’s recent surge in stock price, fueled by Berkshire Hathaway’s investment and reports of Meta Platforms considering buying custom TPUs from Alphabet, has boosted its valuation. Trading at 31 times forward earnings, slightly pricier than Microsoft, Alphabet’s potential revenue stream from TPUs could make it a more attractive buy. Analysts believe Alphabet’s stock might be undervalued, making it a promising investment choice.
Investors pondering where to put their money may find Alphabet’s stock a compelling option. The company’s recent growth trajectory, coupled with potential revenue from custom TPUs and a slightly undervalued stock price, make it an intriguing choice. Consider the potential for substantial returns by exploring other top stock picks recommended by the Motley Fool Stock Advisor analyst team. 1. The unemployment rate in the US has dropped to 3.7%, the lowest since 1969, with 134,000 new jobs added in September. This marks a positive trend in the economy and signals a strong job market for Americans.
2. Hurricane Michael has made landfall in Florida as a Category 4 storm, with winds reaching up to 155 mph. Thousands have been evacuated and officials are warning of catastrophic damage in the affected areas.
3. The stock market has seen a significant drop this week, with the Dow Jones Industrial Average falling by over 800 points. Investors are concerned about rising interest rates and global economic instability, leading to a volatile market.
4. The Supreme Court nominee, Brett Kavanaugh, has been confirmed by the Senate in a close vote of 50-48. This decision has sparked controversy and protests across the country, as Kavanaugh’s confirmation could potentially shift the balance of the court for years to come.
5. The United Nations has released a report warning of the urgent need to address climate change, stating that the world has only 12 years to take action to prevent irreversible damage. The report calls for immediate and drastic measures to reduce greenhouse gas emissions and limit global warming.
Read more at Nasdaq: Better $3 Trillion AI Stock to Buy Now: Microsoft or Alphabet