Google: Almost The Cheapest Magnificent 7 Stock, Double-Digit Growth Expected

Summary:

  • Despite the previous market concerns about the longevity about its Google Search segment attributed to the rise of ChatGPT, the segment remains GOOG’s top/ bottom-line driver in FQ2’24.
  • The management has demonstrated their ability to push Google Cloud into sustained profitability, despite our original skepticism surrounding the new accounting methodology.
  • GOOG is also nearing its projected $100B revenue run-rate from both YouTube Ads and Google Cloud by end 2024, as observed from the cumulative FQ2’24 revenue of $19B.
  • Its in-house AI capabilities, vertically integrated platform building expertise, and innovation across its existing/new offerings have led to its promising results indeed.
  • Combined with its market-leading streaming share and monetization of autonomous driving through Waymo, it is apparent that the market is sleeping on GOOG’s well-diversified capabilities.

Shopping Trolley Growth

Jonathan Kitchen

We previously covered Alphabet Inc. aka Google (NASDAQ:GOOG) in May 2024, discussing its promising prospects in the search engine/ generative AI capabilities, along with robust profitability and rich balance sheet in FQ1’24.

Combined with its ability to


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