The latest tech sell-off has been hard on many companies, including Alphabet (GOOG 1.75%) (GOOGL 1.68%). At its high, Alphabet attained a valuation worth over $2.5 trillion. Now, it sits at $2 trillion. That's a huge amount of value erased from one of the world's top tech companies in just a few weeks. But was the sell-off justified for Alphabet?Alphabet is now the cheapest stock in the Magnificent Seven cohort by far, yet it has better finances than many of the others in that grouping. As a result, I think ...

Core Viewpoint - The current market environment has been challenging for the "Magnificent Seven" stocks, with Alphabet being highlighted as a potential bargain opportunity despite its recent decline [1][2]. Group 1: Alphabet's Financial Performance - Alphabet generated over $350 billion in revenue in 2024, marking a 14% increase and nearly $100 billion more than three years ago [4]. - The company has accumulated $96 billion in cash, cash equivalents, and short-term marketable securities, providing significant flexibility for growth investments [5]. - Alphabet's operating income exceeded $112 billion in 2024, showcasing its strong financial health [5]. Group 2: Growth Potential of Google Cloud - Google Cloud is Alphabet's fastest-growing segment, with Q4 revenue increasing 30% year over year to $12 billion, representing 12.4% of total revenue [6]. - The market share of Google Cloud has grown from 5.7% five years ago to 12% as of Q4, indicating a positive trend [7]. - The cloud computing market is projected to grow at a CAGR of over 16% through 2032, positioning Google Cloud for increased revenue and profitability without needing to surpass AWS or Azure [8]. Group 3: Valuation Considerations - Alphabet is currently trading at less than 21 times trailing-12-month earnings, which is significantly lower than its historical averages over the past five and ten years [10]. - This valuation makes Alphabet noticeably cheaper compared to other stocks in the "Magnificent Seven" [10].

Core Viewpoint - The "Magnificent Seven" tech stocks, which include Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, have recently shifted from leading gains to declines amid economic concerns, particularly regarding U.S. import tariffs, but the long-term potential in AI remains strong [1][2][3] Group 1: Meta Platforms - Meta Platforms dominates social media with over 3.3 billion daily users across its platforms, generating significant advertising revenue [4] - The company is heavily investing in AI, with capital spending projected to reach up to $65 billion this year, including the construction of a large data center [5][6] - Meta's forward earnings estimates are currently at 23x, down from over 29x, indicating it is a bargain buy [6] Group 2: Alphabet - Alphabet is best known for Google Search, which holds about 90% market share, and has a growing revenue stream from Google Cloud, which saw a 30% revenue increase to $12 billion in the recent quarter [7][8] - The company has significantly increased its AI-related compute capacity, with customers using over eight times the capacity compared to eighteen months ago, driving revenue growth [9] - Alphabet is currently the cheapest among the Magnificent Seven stocks, trading at 18x forward earnings estimates, making it an attractive investment in the AI sector [10]

Google is allowing users to personalize its Gemini chatbot with new features, which the company rolled out Thursday in experimental mode.Gemini can now reference users' Google Search histories to understand them better and give more relevant recommendations, the company wrote in a blog post Thursday. It's an opt-in feature that allows the company to use search history data within its conversational AI.The company also said users can now connect their respective apps to Gemini, including Calendar, Notes, Tas ...

GOOGL REVERSES EARLY WEAKNESS AFTER SIGNAL FROM TRADEPULSEAlphabet, Inc. (GOOGL) today experienced a Power Inflow, a significant event for those who follow where smart money goes and value order flow analytics in their trading decisions. Today, at 10:16 AM on March 12th, a significant trading signal occurred for Alphabet, Inc. (GOOGL) as it demonstrated a Power Inflow at a price of $164.60. This indicator is crucial for traders who want to know directionally where institutions and so-called "smart money" mo ...

Alphabet's (NASDAQ: GOOG ) next big growth engine is likely to come from the passenger seat of a self-driving car. The tech giant's self-driving subsidiary Waymo is emerging as a potential goldmine for its future. Alphabet's core businesses of search and online streaming"AWS Certified AI Practitioner Early Adopter"I am a DevOps Engineer for a major, wholly owned subsidiary of a large-cap Fortune 500. I am a true subject-matter expert on the actual buildout, deployment, and maintenance of AI tools and applic ...

Google Cloud restructured its strategy team to "respond faster" to the market.One of the biggest changes has been made to boost sales productivity, per an internal memo.Cloud has become a crucial part of Google's business in the AI race.Google has shaken up its Cloud group yet again, this time consolidating teams in its strategy unit. Staff in Google Cloud's strategy and operations team were told in February that the reorganization would help the company "respond faster to market demands," according to a me ...

Google DeepMind CEO Demis Hassabis, left, and Google CEO Sundar Pichai open the tech titan's annual I/O developers conference focusing on how artificial intelligence is being woven into search, email, virtual meetings and more, May 14, 2024.Google is bringing its DeepMind artificial intelligence technology models into the physical world to power robots.The company on Wednesday debuted two new AI models, Gemini Robotics and Gemini Robotics-ER (extended reasoning). They both run on Gemini 2.0, which Google ca ...

Group 1 - Alphabet Inc. (NASDAQ: GOOG) is recognized as one of the largest and most influential technology companies globally, with its search engine, Google, being a significant part of its identity [1] - The company is viewed as a value investment opportunity, particularly for those focusing on long-term growth potential at reasonable prices, especially during periods of strategic changes [1] - Strategic changes within the company are seen as a corrective force that can help return the stock to its intrinsic value, presenting high return potential for investors due to associated misconceptions and uncertainties [1] Group 2 - The analysis emphasizes the importance of understanding company strategies and competitive advantages to assess future prospects [1]

Core Insights - Anthropic, a San Francisco AI startup, has significant financial ties to Google, which owns a 14% stake and plans to invest an additional $750 million this year, bringing Google's total investment to over $3 billion [1][2]. Group 1: Investment and Ownership - Google holds a 14% stake in Anthropic and is set to invest $750 million through a convertible debt deal this year [1]. - Total investment from Google in Anthropic exceeds $3 billion [1]. Group 2: Independence and Regulatory Scrutiny - Despite Google's financial backing, Anthropic lacks voting rights, board seats, or direct control from Google, raising questions about its independence [2]. - The increasing reliance of AI startups on funding from tech giants has attracted regulatory scrutiny regarding potential unfair advantages, although a proposal to force the sale of such stakes was recently dropped by the Justice Department [2]. Group 3: Competitive Landscape - Google is developing its own technology while also funding competitors like Anthropic, indicating a strategy to hedge its bets in the AI sector [3]. - Amazon has also invested significantly in Anthropic, agreeing to invest up to $8 billion, prompting questions about the implications of such financial ties for the independence of AI startups [3].