Alphabet Stock Looks Like a Big Tech Bargain
There's no company quite like (NASDAQ: GOOG)(NASDAQ: GOOGL). The tech giant has long dominated online search, soaking up a huge chunk of digital ad spending as businesses vie for clicks. YouTube is also a big moneymaker, accounting for nearly 10% of all U.S. TV viewership. And let's not forget about Android, which powers the majority of the world's smartphones and helps fuel the company's other businesses. There's also Google Cloud, which is now profitable and at an annual revenue run rate of nearly $50 billion.
Despite solid revenue and profit growth, Alphabet stock has been lagging lately. Over the past three years, shares of Alphabet have underperformed the S 500, and they've also lost out to other tech giants like Microsoft. This has created a situation where Alphabet stock looks downright affordable. Based on analyst estimates, Alphabet trades for less than 19 times forward earnings, compared to a P/E ratio of around 30 for both Microsoft and Apple.
There are valid reasons for investors to be cautious. However, the stock is rarely this cheap, and a massive cash hoard and hefty profits buy the company time adapt to a changing industry.
Source Fool.com
Alphabet Inc. A Stock
The stock is one of the favorites of our community with 149 Buy predictions and 4 Sell predictions.
As a result the target price of 300 € shows a slightly positive potential of 11.75% compared to the current price of 268.45 € for Alphabet Inc. A.
