Google: Almost The Cheapest Magnificent 7 Stock, Double-Digit Growth Expected

Summary

• Despite the previous market concerns about the longevity about its Google Search segment attributed to the rise of ChatGPT, the segment remains GOOG's top/ bottom-line driver in FQ2'24.
• The management has demonstrated their ability to push Google Cloud into sustained profitability, despite our original skepticism surrounding the new accounting methodology.
• GOOG is also nearing its projected $100B revenue run-rate from both YouTube Ads and Google Cloud by end 2024, as observed from the cumulative FQ2'24 revenue of $19B.
• Its in-house AI capabilities, vertically integrated platform building expertise, and innovation across its existing/new offerings have led to its promising results indeed.
• Combined with its market-leading streaming share and monetization of autonomous driving through Waymo, it is apparent that the market is sleeping on GOOG's well-diversified capabilities.

Jonathan Kitchen

We previously covered Alphabet Inc. aka Google (NASDAQ:GOOG) in May 2024, discussing its promising prospects in the search engine/ generative AI capabilities, along with robust profitability and rich balance sheet in FQ1'24.

Combined with its ability to

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOOG, TSLA, META, MSFT, NVDA, NFLX, AMZN, AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.