Google: Buy The Antitrust Issues

Summary:

  • Despite antitrust issues, Alphabet’s core financial performance, especially in Cloud and Search, remains strong; investors should focus on its robust earnings and free cash flow, not on headlines.
  • Analysts’ positive EPS estimate revision momentum, strong FCF and Cloud strength make Google a buy ahead of the Q3 earnings release next month.
  • Google’s valuation is attractive at a forward P/E ratio of 19X, making it the cheapest large-cap tech company, despite its high free cash flow profitability.
  • The main risk is a potential slowdown in Google Cloud business, but continued AI investments should drive long-term growth and profitability.

The Power of Search Engine. Transforming Industries and Customer Service. A Look into the Future of AI search. Yellow loupe icon processing search requests. Modern 3D render

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Although Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) (NEOE:GOOG:CA) business is crushing it in a number of ways, especially in Cloud and Search, the company’s shares have recently suffered after a judge determined that Google was running an illegal


Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, META, AAPL, AMZN 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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