Additionally, Google has made Gemini's Gems feature available to all users for free. Gems allows users to create personalized AI assistants tailored to specific tasks within Gemini. On March 27, Alphabet Inc GOOG GOOGL Google introduced several new features across Search, Maps, and Gemini to enhance vacation planning, BofA Securities noted Monday. In Search, users can generate detailed travel itineraries with AI Overviews, which can be saved as custom lists in Google Maps. Google has also expanded hotel pri ...

It's down close to 20% this year already. *Stock prices used were from the trading day of March 28, 2025. The video was published on March 30, 2025. In this video, I talk about the recent updates regarding Google parent Alphabet (GOOGL -1.80%) (GOOG -2.00%) and explain why I will keep buying more shares. Watch the short video to learn more, consider subscribing, and click the special offer link below. ...

Group 1 - Google's Gemini 2.5 Pro AI has established itself as a superior model in the AI industry, surpassing all existing models since the release of ChatGPT in 2022 [1] - The release of Gemini 2.5 Pro marks a significant shift in the competitive landscape of AI technologies, indicating Google's strong position in the market [1] Group 2 - The article highlights the expertise of a DevOps Engineer with extensive knowledge in AI tools and applications, emphasizing the importance of hands-on experience in the field [1] - The engineer is pursuing advanced AWS machine learning certifications to enhance their expertise, reflecting the ongoing demand for skilled professionals in AI and machine learning [1]

Group 1 - Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock has experienced a bearish sentiment, resulting in a correction of nearly 20% since early February [1] - The overall sentiment on Wall Street has turned negative due to fears of a recession [1] Group 2 - The analyst has over 4 years of experience in the technology sector, including work with major companies like IBM [1] - The analyst holds an MBA in finance and has been covering various blue-chip stocks for the past 6 years [1] - Hands-on knowledge in the technology sector has provided valuable insights into market fluctuations, aiding in the prediction of winners and losers [1]

Core Viewpoint - Alphabet is positioned for long-term growth and is expected to continue outperforming the stock market due to its innovative structure and diverse business ventures [3][14][15] Financial Performance - Alphabet shares have gained 1,320% since their initial purchase price of $11.68 per share, significantly outperforming the S&P 500's 438% increase over the same period [3] - Despite market downturns, such as a 44.3% drop in 2022, the company is expected to recover and continue its growth trajectory [6][5] Business Structure and Flexibility - The diverse structure of Alphabet allows it to adapt and explore new revenue streams beyond its core operations in online search and advertising [7][9] - Potential future revenue sources include self-driving taxis, medical research, drone delivery services, and advanced AI tools [8][9] Innovation and Market Leadership - Alphabet actively leads market changes with innovations in areas like YouTube, Android, quantum computing, and generative AI [12][13] - The company embraces unconventional ideas and is willing to take risks, which is essential for fostering innovation [13][14] Long-term Outlook - Alphabet's market capitalization stands at $2 trillion, indicating a strong foundation for future growth [14] - The company is expected to outperform the broader stock market for the foreseeable future, reinforcing confidence in its long-term investment potential [15]

Settlement of Class Action Lawsuit - Google reached a preliminary settlement in a 14-year-old class action lawsuit with advertisers, agreeing to pay $100 million while denying any wrongdoing [1][2] - The lawsuit, initiated in March 2011, alleged that Google failed to provide promised discounts and charged for clicks outside targeted geographic areas [1] Legal Proceedings and Outcomes - The settlement requires judicial approval, and the lengthy legal battle was attributed to the extensive evidence gathered and mediation sessions [2] - In a separate case, a federal judge dismissed part of a lawsuit accusing Google of misleading investors about its digital advertising practices and user privacy protections, citing insufficient evidence from shareholders [3] Additional Legal Challenges - A 2023 lawsuit alleged that Google manipulated online advertising through preferential bidding and misrepresented the competitive nature of its ad market [4] - The Department of Justice is pursuing a court order to compel Google to sell its Chrome browser following a ruling that Google held an illegal search monopoly, with a hearing scheduled for April [5]

Core Viewpoint - Alphabet's stock is undervalued compared to its peers and the broader market, despite its strong growth potential, making it a compelling investment opportunity [2][11]. Group 1: Company Performance - Alphabet has shown respectable growth, with a revenue increase of 12% in the fourth quarter, and analysts expect an 11% revenue growth for both 2025 and 2026 [8]. - The company actively repurchases its stock, buying back approximately $15 billion in the fourth quarter, which equates to about 3% of the company annually, contributing to double-digit growth in earnings per share (EPS) [8][9]. Group 2: Valuation and Market Position - Alphabet's stock trades at a significant discount compared to its peers in the "Magnificent Seven," with a forward price-to-earnings (P/E) ratio lower than the S&P 500, which is valued at 21 times forward earnings [6][7]. - The company's valuation concerns are primarily linked to fears of a potential breakup due to ongoing legal challenges regarding its market dominance [4][6]. Group 3: Regulatory Environment - The Department of Justice is pursuing actions that could lead to the sale of the Google Chrome browser, which is seen as a move to address monopoly concerns [4]. - Alphabet is actively fighting against the breakup, arguing that it could negatively impact the economy and national security [5][9]. Group 4: Future Outlook - Despite the regulatory challenges, Alphabet is expected to continue delivering strong earnings growth, potentially outperforming the market [9][11]. - Even in the event of a breakup, spun-off companies often unlock significant value, which could benefit investors [10].

Core Viewpoint - Alphabet is emerging as a promising dividend growth stock, leveraging its strong cash flow and growth in AI to increase its dividend per share over the long term [1][2]. Group 1: Dividend Growth Potential - Alphabet has initiated a small dividend yielding 0.47%, with significant potential for growth as it capitalizes on advancements in AI [2][6]. - The company’s free cash flow per share is currently $5.70, with only 14% allocated to its annualized dividend of $0.80, indicating a substantial runway for future dividend increases [8]. Group 2: Revenue Growth and AI Impact - Alphabet's revenue from Google Search is growing at a double-digit rate, with a year-over-year growth of 12.5% last quarter, aided by AI features [3]. - The Google Cloud division is experiencing a 30% year-over-year revenue growth, reaching $12 billion last quarter, contributing to its profitability with over $2 billion in operating income [4]. Group 3: Earnings and Share Repurchase Strategy - Operating income reached a record $112 billion in 2024, with consistent earnings growth expected to support dividend payouts [5]. - The company has reduced its shares outstanding by 11% over the last five years, enhancing its ability to increase dividend per share [7]. Group 4: Competitive Advantages - Alphabet benefits from diversified revenue streams across Google Search, YouTube, and Google Cloud, which mitigates risks associated with any single segment [9]. - The YouTube platform exhibits a network effect, while Google Search maintains a distribution advantage, and Google Cloud is positioned to achieve economies of scale [10]. Group 5: Long-term Outlook - The company is anticipated to experience steady earnings growth, which will support its dividend payouts and position it as a leading dividend growth stock in the coming decades [11].

Company Performance - Alphabet's stock closed at $162.18, reflecting a -1.74% change from the previous day, underperforming the S&P 500's daily loss of 0.33% [1] - The stock has decreased by 4.44% over the past month, which is better than the Computer and Technology sector's loss of 7.14% but worse than the S&P 500's loss of 4.03% [1] Upcoming Earnings - Alphabet is expected to report an EPS of $2.02, indicating a 6.88% increase from the same quarter last year [2] - The projected revenue for the upcoming earnings is $75.65 billion, representing an 11.92% increase from the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $8.90 per share, with revenue expected to reach $330.07 billion, reflecting increases of +10.7% and +11.84% respectively from the prior year [3] Analyst Estimates - Recent changes in analyst estimates for Alphabet are important as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Alphabet at 3 (Hold) [6] Valuation Metrics - Alphabet has a Forward P/E ratio of 18.54, which is lower than the industry average of 21.63, suggesting that Alphabet is trading at a discount [7] - The company has a PEG ratio of 1.19, compared to the industry average PEG ratio of 1.31, indicating a favorable valuation relative to expected earnings growth [8] Industry Context - The Internet - Services industry, which includes Alphabet, has a Zacks Industry Rank of 131, placing it in the bottom 48% of over 250 industries [9] - Research indicates that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - Alphabet's acquisition of cybersecurity startup Wiz for $32 billion aims to strengthen its position in cloud security and AI-driven solutions, despite the stock remaining flat since the announcement [1][2]. Acquisition Details - The deal is expected to close next year, pending regulatory approval, and will be Alphabet's largest acquisition to date, surpassing the $12.5 billion purchase of Motorola Mobility in 2012 [2]. - Wiz, founded in 2020, has rapidly scaled to achieve $100 million in annual recurring revenue (ARR) within 18 months and is projected to reach $700 million in ARR by 2024, with a private market valuation of $12 billion [3]. Wiz's Market Position - Wiz's innovative cybersecurity features include real-time agentless visibility and risk prioritization, and its customer base includes major cloud providers like Google Cloud, AWS, and Azure, as well as over half of the Fortune 100 companies [4][3]. - The acquisition reflects Alphabet's willingness to pay a premium for Wiz due to its significant customer base and rapid growth [4]. Alphabet's Financial Health - Alphabet has $95.65 billion in cash and equivalents, with total assets of $450.25 billion, significantly exceeding total liabilities of $125.17 billion, indicating strong financial health to support the acquisition [5]. Google Cloud Growth - Google Cloud has been Alphabet's fastest-growing segment, with revenue increasing by 30% to $11.95 billion in the last quarter, and operating income soaring 142% to $2.09 billion compared to the previous year [7]. - Google Cloud accounted for 12% of Alphabet's total revenue last year, amounting to $43.2 billion, a 64% increase from $26.28 billion in 2023 [8]. Future Outlook - The acquisition of Wiz is seen as a strategic move to enhance Alphabet's capabilities in the competitive landscape of cloud computing, cybersecurity, and AI, potentially leading to lucrative returns in the future [11].