Alphabet: The Cheapest 'Magnificent 7' Stock Into The Q2 Earnings Season
Summary
- Alphabet remains deeply undervalued despite recent gains, with a forward PE below 20, way lower than Magnificent 7 peers.
- Rockstar financials, including a 34% ROIC and $95 billion cash pile, position Google to profitably invest in AI and future growth projects.
- AI leadership, new product launches, and positive Q2 earnings momentum support continued double-digit growth and strong bullish sentiment.
- Technical indicators and analyst optimism reinforce my Strong Buy rating, though competition in generative AI remains a key risk to monitor.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOOGL 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.
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