Prediction: Alphabet Stock Could Surge by 100% (or More) in the Next 5 Years

Group 1 - Alphabet has become the cheapest stock in the "Magnificent Seven" with a P/E ratio of 21, despite concerns about its position in the AI race [2][11] - The company has a history of leveraging AI since 2001, which has contributed to its dominance in digital advertising [3] - Alphabet's investments in various enterprises, including YouTube and Google Cloud, are expected to prepare it for a future where digital ad revenue is less critical [4][5] Group 2 - Alphabet plans to invest $75 billion in capital expenditures (capex) this year, an increase from$53 billion in 2024, indicating its commitment to growth [6] - In 2024, Alphabet's revenue rose 14% to $350 billion, with advertising still accounting for 76$95 billion in liquidity and generated over $69 billion in free cash flow [8] - The company spent more than$62 billion on share repurchases and over $7 billion on dividends in 2024, demonstrating its financial strength [9] - The stock has increased nearly 150% over the last five years, with a 45% rise since the release of GPT-4 in May 2023, indicating positive investor sentiment [10] Group 4 - Given its technology and investment strategies, Alphabet's stock is projected to at least double over the next five years [11][12] - The competitive landscape, particularly from ChatGPT, has prompted a reevaluation of Alphabet's value proposition, but its spending on technology is expected to enhance free cash flow and maintain competitiveness [11][12] - The low P/E ratio further positions Alphabet for potential outsized growth, making a 100% gain in five years a realistic target [12]