Alphabet (GOOG 1.24%) (GOOGL 0.95%) stock inched higher in Monday trading as the market turned green again on positive news of a moderation of President Trump's tariffs on electronic goods. As of 11:05 a.m.
I believe that Alphabet is moving more rapidly to grow a number of its divisions. I believe market participants will raise its value higher. We see Waymo opening a number of new cities in rapid succession and gaining share. Waymo should receive the same valuation for Robotaxi that Tesla does. Google cloud platform is profitable and growing at 30% per year. Renewing an effort to take market share from Microsoft Office via a potentially very large deal with the GSA.
While Microsoft has backed off some leases recently with its data center buildout, both Amazon (AMZN 2.01%) and Alphabet (GOOGL 2.79%) (GOOG 2.56%) look prepared to go full steam ahead.
Alphabet is trading at just 18x earnings and 14x last year's operating cashflow, making it the cheapest among the Mag 7. Current trade policies don't affect Google Search and Cloud services, and smartphones are now exempt from the 145% tariffs. Google Search remains strong, despite the massive adoption of AI tools like ChatGPT, evidenced by double digit revenue growth in Search and YouTube ads in 2024.
I give Alphabet Inc. a strong buy rating. The company has an excellent annual free cash flow and high-quality earnings. Alphabet's shares have an intrinsic value of $270.71, meaning the stock is currently undervalued by $121.47, trading at almost 45% below their intrinsic value.
It's been years since Google, the world's dominant search engine, has felt genuine competition. As a result, its parent company, Alphabet (GOOGL 2.79%) (GOOG 2.56%), has been a market-beating investment for the past two decades.
Alphabet and Nvidia have joined prominent venture capital investors to back Safe Superintelligence (SSI), a startup co-founded by OpenAI's former chief scientist Ilya Sutskever that has quickly risen to become one of the most valuable artificial intelligence startups months after its launch, a source familiar with the matter said.
Alphabet Inc. is down 20% YTD, driven by a broad-based market pullback as recession risks rise amid Trump's tariff policy. Despite the global trade war, Alphabet's core business has limited exposure to international trade, and the company has minimal business operations in China. With inflation expectations rising due to the tariff policy, Google's pricing power gives it room to pass higher costs to customers without putting much pressure on margins.
Alphabet (GOOGL 2.74%) (GOOG 2.56%) stock is rising Friday. The tech giant's share price was up 2.4% as of 3 p.m.
Google parent Alphabet has reportedly slashed hundreds of jobs in the division responsible for Android and its Chrome web browser as part of its latest restructuring.
GOOGL unveils Ironwood Tensor Processing Unit, Cloud Wide Area Network, and Gemini 2.5 AI model to power next-generation enterprise AI and quantum breakthroughs.
Despite increased market volatility surrounding tariff announcements, investors shouldn't forget about a major technological innovation that's happening. I'm talking about artificial intelligence (AI), which is still a very important trend to pay attention to.