The One Unstoppable Reason to Buy Alphabet Stock Now
Google's parent company just flexed muscles Wall Street didn't know it had.
Cash Machine Mode Activated
While FAANG peers bleed cash on metaverse fantasies, Alphabet's advertising engine keeps minting money—$182 billion last year alone. Those 'excessive' moonshot projects? Turns out they were R&D tax shelters with billion-dollar side hustles.
The AI Endgame
Every hedge fund manager chasing Nvidia missed the real play. Alphabet's TPU chips already power 70% of generative AI workloads. When the bubble pops, guess who's holding both the picks (AI infrastructure) and the gold (search monopoly)?
Buy now before Wall Street realizes they've been shorting the wrong tech giant. Again.
Image source: Alphabet.
Press play on YouTube
This high-quality company deserves a spot in your portfolio because it appears to be undervalued. Looking at different segments paints a clearer picture.
YouTube provides a perfect example. The video streaming service has an estimated 2.5 billion monthly users. It raked in $9.8 billion just in ad revenue in the second quarter, a figure that excludes subscription sales -- an important factor. And even better, as a two-sided platform, YouTube possesses a very powerful network effect.
currently sports a market cap of $502 billion. It's easy to argue that YouTube is worth at least this much, if not more. The latter commands 12.8% of daily TV viewing time in the U.S., well ahead of Netflix's 8.3% share.
Other parts of the empire
Alphabet has other operating segments under the hood. There's Google Search, the company's crown jewel that represented 56% of total revenue in Q2. Don't forget about Android and Chrome. And Waymo, the autonomous driving division, could be a major financial contributor if adoption continues to grow.
If regulatory actions force the company to break up, investors might still win out in the end. Of course, these different platforms all work better together, with technological know-how, data, and other resources being shared between them to make the whole business stronger. Nonetheless, Alphabet's attractive valuation is a top reason to buy shares.
