Alphabet (GOOGL): The Magnificent 7’s Stealth Outperformer
While tech titans battle for headlines, Alphabet quietly crushes it—no hype, just dominance.
Search? Still a cash-printing monopoly. Cloud? Growing faster than AWS. YouTube? Basically a tax on human attention.
Yet Wall Street obsesses over flashier rivals—classic short-termism while the Google mothership keeps innovating (and acquiring) under the radar.
Bonus cynicism: If ’metaverse’ was a real business, Google would’ve bought it by now.
Source: Reuters / Brendan McDermid
Alphabet Remains Top Magnificent 7 Stock People Aren’t Paying Close Attention To
The US stock market started the week on a strong note, with potential trade deals driving shares slightly higher. However, that shifted in a big way Wednesday. Indeed, the top three indexes fell across the board as issues surrounding the national debt crisis had led many investors to panic.
That development doesn’t detract from the overarching potential in the market this year. Although companies like Nvidia (NVDA) and a resurging Tesla (TSLA) have gotten attention, one is being forgotten. Indeed, Alphabet (GOOGL) is firmly stated as the most overlooked stock of the Magnificent 7.
The Google parent company is currently selling at a P/E ratio of 19. Moreover, it stands as a top AI development firm, first utilizing the tech more than 24 years ago. Additionally, its financials are incredibly strong, with $75 billion in free cash flow over the last year and $95 billion in liquidity.
There are still questions, specifically regarding how it stands in the AI space. The arrival of OpenAI’s ChatGPT changed everything, which knocked Google’s market share to below 90% for the first time ever, according to a recent report.
However, Alphabet is far more than a company that relies solely on what Google can provide it. Its advertising business has skyrocketed. Specifically, it constituted 74% of its revenue in Q1, while its Google Cloud offering jumped to a revenue share of 14%. Altogether, it is showing the diversification and reach necessary to be one big play away from skyrocketing among its mega-cap peers.
