Google: Obvious Buys Are Often The Most Rewarding


  • Down 25% in the past one year, GOOG’s valuation is now compelling with both its P/E and EV/EBITDA looking attractive.
  • The company has remained remarkably resilient and continues to grow its top line and profitability despite weak ad spending in 2022.
  • Although ChatGPT has raised the competitive bar, fears of the threat that it poses to GOOG’s search business are unfounded in my view.
  • GOOG has been steadily growing R&D spending, including in areas like AI, without taking on debt, sacrificing margins, or issuing new shares.
  • The stock is an obvious buy at current levels that will likely reward investors who take advantage of the share price and accumulate.

Google Website

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Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) has fallen by more than 25% in the past 1 year. It has nonetheless performed marginally better than the broader communication services sector as represented by the Communication Services Select Sector

GOOG vs XLC in past 3 years

GOOG vs XLC in past 3 years (Seeking Alpha)

GOOG's current market cap 40% off all time highs

GOOG’s current market cap 40% off all time highs (Seeking Alpha)

GOOG's R&D Spend Growing Robustly

GOOG’s R&D Spend Growing Robustly (Statista)

Disclosure: I/we have a beneficial long position in the shares of GOOG 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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