Alphabet: Momentum Keeps Building, And The Stock Remains A Buy

Core Viewpoint - The article discusses the evaluation of Alphabet's stock using a DCF model, recommending a buy due to its attractive valuation following a price drop caused by trade tensions and reduced AI hype [1]. Investment Principles - The company emphasizes investing in firms with consistent earning power and durable competitive advantages [1]. - A sufficient margin of safety is preferred when investing in companies [1]. - The focus is on companies that generate substantial cash flow and consistently achieve above-average returns on capital [1]. - Companies with conservative leverage are favored [1]. - Maintaining an appropriate level of cash is essential to capitalize on market volatility [1]. Earnings Performance - The company is increasing its position in Alphabet following a stronger-than-expected Q2 2025 earnings release [2].