Cathie Wood, known for high-conviction bets, recently added shares of Alphabet despite bearish AI narrative. A close look at Alphabet’s financials shows success in AI pursuits. Wood balances speculative positions with blue-chip opportunities. Ark’s portfolio includes high-flying AI growth stocks and members of the “Magnificent Seven.”

Alphabet’s Q2 results show $71.3 billion in advertising revenue, with Google Search and YouTube growing at 12% and 13%. Despite bearish predictions of search dominance decline, growth between Google Search and YouTube remains strong. Alphabet’s profit margin profile raises investor concerns, with revenue growing but operating margin staying flat at 40%.

Alphabet makes strategic AI investments, including acquiring cybersecurity startup Wiz for $32 billion and developing quantum computing operation with custom chipsets. Despite potential monetization challenges, these investments strengthen core business and open doors to new opportunities. Alphabet’s valuation compared to big tech peers suggests undervaluation due to growth disparities.

Alphabet’s resiliency in growing revenue, striking deals with rivals, and maintaining profit margins amid aggressive investments indicates a buying opportunity. Wood sees Alphabet as a rare cheap stock among AI players and anticipates significant valuation expansion. Consider Stock Advisor’s top 10 stock picks for potential returns, available upon joining.

Read more at Yahoo Finance: Cathie Wood Goes Bargain Hunting. 1 Dirt Cheap Artificial Intelligence (AI) Stock With Monster Potential She Just Bought