Google: Top Large Cap Pick For 2025

(17min)

Summary

  • Google is undervalued despite boasting the highest ROIC in its history, a net cash balance sheet, and a forecasted $75B in FCF for 2023.
  • The DOJ's anti-trust cases are unlikely to result in catastrophic outcomes, with historical precedents suggesting manageable remedies for Google.
  • Google's AI advancements, particularly the Gemini model and custom TPUs, position it as a leader in AI, creating a significant buying opportunity.
  • The recent quantum computing breakthrough offers a free call option on revolutionary technology, enhancing Google's long-term investment appeal.

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Introduction

Google (NASDAQ:GOOG), (NASDAQ:GOOGL) is a company that feels as though it's been through the wars over the past two years or so. The company was delivered a shock awakening in 2022 with the launch

This article was written by

Professional equity portfolio manager for a boutique buy-side asset manager.My focus is on finding high-quality companies, applying a disciplined approach to valuation and identifying underappreciated opportunities. My goal is to identify opportunities in cash-rich companies with strong balance sheets and shareholder friendly policies. I endeavour to incorporate a mix of quantitative and qualitative measures to identify opportunities in stocks. Long-only approach with a long-term investment focus.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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