3 Reasons This Beaten-Down "Magnificent Seven" Stock Is a Bargain Buy Right Now

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$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].