Alphabet (GOOGL -2.22%) (GOOG -2.14%) stock reached an all-time high price of $207.05 on Feb. 4, riding a wave of strong growth and earnings momentum from 2024. For shareholders, the last few months have been challenging with concerns over the strength of the global economy rattling the broader stock market. At the time of writing on April 11, shares of Alphabet are down 24% from that record high.Despite this turbulence, what hasn't changed is the ongoing artificial intelligence (AI) revolution. Innovations ...

It's not an easy matter to make predictions about the stock market, since no one really knows what it will do from day to day or even year to year. (Over long periods, though, it has always gone up.)Still, I'm here to make a prediction, and I'm predicting that three stocks in particular will be worth more than Costco Wholesale (COST 1.15%) a decade from now. Here's a look at those companies -- and at Costco too. Why Costco?First off, why am I focusing on Costco? Don't I like it? Well, I do, and I'm a longti ...

Back in April ‘23, we assessed Alphabet Inc. (NASDAQ: GOOG ), (NASDAQ: GOOGL ) using a DCF analysis and recommended our readers either hold the stock trading at $106.90 or consider taking a position in the Nasdaq composite index. TheWe write about companies trading at attractive valuations with strong durable competitive advantages. Investment Principles- Invest in companies with consistent earning power and durable competitive advantages.- Invest in companies where we can get a sufficient margin of safety. ...

The stock of Alphabet (GOOG 2.56%) (GOOGL 2.79%) has fallen off in recent months because of tariff-related economic uncertainty. Today, it's actually the cheapest of the Magnificent Seven stocks by far, with a P/E ratio below 20.The overriding concern with Alphabet is that generative AI could eat into its main cash cow, Google Search. However, Search has still shown double-digit growth over the past year, even with the adoption of generative AI chatbots, and any decline in Search revenue is likely to be slo ...

Group 1 - The article discusses the challenges faced by market participants, including traders, medium-term speculators, and buy-and-hold investors, particularly in identifying the right time to buy stocks [1] - It highlights the tendency for average stock purchasers to buy stocks that are already overbought, leading to potential losses when prices drop [1] - The article emphasizes the importance of actionable trading and investing ideas, as well as community interaction for better decision-making [1] Group 2 - David H. Lerner is identified as an analyst with a decade of experience in software consulting and technology, focusing on market trends and trade ideas [2] - The analyst employs a combination of technical analysis and market psychology to achieve outsized returns, indicating a strategic approach to investing [2] - A trading style known as "Cash Management Discipline" is utilized to hedge against market volatility, reflecting a risk management strategy [2]

Core Insights - Microsoft is scaling back on some data center leases while Amazon and Alphabet are committed to significant investments in infrastructure and AI [1][2] - Amazon plans to spend $75 billion on data center capital expenditures in 2025, while Alphabet aims for around $100 billion [3] - Both companies are developing custom AI chips to reduce costs and improve performance in AI workloads [9][10] Investment Strategies - Amazon's historical capital expenditures have led to substantial growth, particularly in e-commerce and cloud computing [4][5] - Alphabet's Google Cloud has recently become profitable, with a 142% increase in operating income to $2.1 billion [6] - Analysts have noted a correlation between Amazon's investment cycles and revenue growth, suggesting potential stock outperformance [7] AI Infrastructure and Cost Management - Amazon's data center investments are expected to yield attractive free cash flow and return on invested capital, with asset lifespans of 15 to 20 years [8] - Both companies are focusing on inference as a key driver of AI costs, with Amazon's Trainium2 chip offering a 30% to 40% better price-to-performance ratio than current GPUs [9] - Alphabet's new Ironwood chip is designed for inference, enhancing computational power and energy efficiency [10] Broader Business Implications - AI is enhancing operational efficiency in logistics and product recommendations for Amazon, while Alphabet is advancing its AI capabilities with models like Gemini 2.5 [14] - The current market conditions have led to attractive valuations for both Amazon and Alphabet, positioning them as solid long-term investments in AI [15]

Group 1: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is currently viewed as a strong investment opportunity due to its low valuation, trading for less than 18 times forward earnings after a recent sell-off [5][6]. - The company is exempt from tariffs on semiconductors, which is a crucial factor that many investors overlook, making it an attractive buy [2]. - TSMC is investing $100 billion in U.S. chip manufacturing, which aligns with U.S. policy goals and may protect it from being targeted by tariffs [3]. - Despite concerns about a potential dip in consumer demand, TSMC expects a 45% compound annual growth rate (CAGR) in AI-related revenue over the next five years, contributing to an overall revenue growth projection of 20% CAGR [4]. Group 2: Alphabet - Alphabet is part of the "Magnificent Seven" tech stocks and has maintained a relatively low valuation compared to its peers, despite concerns about its advertising model being affected by generative AI [8][9]. - The ingrained habit of "Googling" among users worldwide provides a strong foundation for Alphabet's advertising business, even amidst fears of a recession [9]. - Historically, Alphabet's stock is near a 15-year low in terms of trailing price-to-earnings (P/E) ratio, indicating it is undervalued despite recession fears [11][12]. - The upcoming commentary from Alphabet in early May regarding the impact of tariffs is anticipated, but current conditions present a favorable buying opportunity for its shares [13].

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and potential returns [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts [1] Stock Selection Criteria - Preference is given to stocks that have undergone a recent sell-off, particularly when there is insider buying at the new lower price, indicating potential recovery [1] - The investor conducts professional background checks on insiders who purchase shares post-sell-off, adding a layer of due diligence to the investment process [1] Market Focus - The investor primarily screens stocks in the US market but is open to owning shares in less stable economies, referred to as "banana republics," indicating a willingness to explore diverse investment opportunities [1]

Core Insights - The primary objective is to identify a company's intrinsic value and locate solid companies that are trading at a significant discount [1] Group 1 - The analyst has a background in Philosophy with a B.A. and M.A. from UCLA and the University of Oklahoma, respectively, and plans to pursue an M.S. in Finance to enhance expertise in the financial sector [1]

Group 1 - Alphabet Inc. has experienced a significant decline of 25% since the release of its 4Q FY2024 earnings report, primarily due to a mixed earnings performance [1] - The initial selloff was triggered by the earnings report, which did not meet investor expectations [1] Group 2 - The company is listed on multiple exchanges, including NASDAQ and TSX, under the ticker symbols GOOG and GOOGL [1]