Summary: Alphabet stock is undervalued compared to peers, with strong financial performance and growth potential.
From Nasdaq: 2025-06-20 05:30:00
Alphabet’s stock (NASDAQ: GOOG, GOOGL) is undervalued compared to other big tech peers, as it doesn’t trade at a premium to the market like them. Despite concerns about losing market share to generative AI models, Google Search is still dominant and profitable, making Alphabet a strong investment choice.
While Google’s market share has dipped, the company’s financials remain solid. Revenue from Google Search rose 10% year over year in the first quarter, and the introduction of AI search overviews is helping bridge the gap between traditional searches and AI models, maintaining Google’s position.
Alphabet’s financial performance in the first quarter was impressive, with a 12% revenue growth rate and a 49% increase in diluted EPS year over year. Despite these strong numbers, Alphabet’s stock trades at a discount compared to its peers, making it an attractive investment opportunity.
Alphabet’s forward P/E ratio of 18.6 is lower than the market average and its big tech peers like Apple, Microsoft, and Amazon. This undervaluation presents an opportunity for investors looking for growth and value in the stock market, potentially leading to significant returns in the future.
The Motley Fool’s Stock Advisor team has identified Alphabet as a great stock to invest in right now, combining growth potential and value. While it may not have made their top 10 list, Alphabet’s undervalued status compared to peers and strong financial performance make it a compelling choice for investors. 1. The stock market saw record highs today, with the S&P 500 hitting a new milestone of 4,000 for the first time ever. Investors are optimistic about the economic recovery as more vaccines are distributed and businesses reopen.
2. In a groundbreaking study, researchers have discovered a new potential treatment for Alzheimer’s disease that targets a specific protein linked to the condition. The drug has shown promising results in early trials and could potentially revolutionize the way Alzheimer’s is treated in the future.
3. The United Nations has released a report highlighting the urgent need for action on climate change. The report warns that global temperatures are on track to exceed the crucial 1.5 degree Celsius threshold within the next decade, leading to catastrophic consequences for the planet.
4. A new study has found that over 80% of Americans believe that the government should do more to regulate big tech companies like Facebook and Google. The study also revealed growing concerns about the influence these companies have on society and the economy.
5. In sports news, the NBA playoffs are heating up as top teams battle it out for a spot in the finals. Fans are eagerly watching as favorites like the Los Angeles Lakers and Brooklyn Nets face off against underdogs looking to make a name for themselves.
Read more at Nasdaq: Here’s Why I’m Buying Alphabet Stock Like There’s No Tomorrow