Alphabet(US:GOOGL) CNBC Televisionยท2025-09-03 16:54Google's Stock Performance & Valuation - Alphabet's stock experienced a significant rise, up 39.12% since May 7th, following a favorable court ruling [1] - The stock is considered undervalued with a forward PE of approximately 22, lower than other Mag 7 companies like Amazon (32+ times) and Microsoft (32+ times) [4][6] - Analysts anticipate further upside potential, suggesting the company's market capitalization could exceed $3 trillion [8] - Nine target hikes were observed following the positive news [6] Impact of Antitrust Ruling - The court ruling removes a significant regulatory overhang, allowing Google to invest more freely in AI and other ventures [8][10] - The ruling is seen as a "clearing event" benefiting the entire AI sector by enabling Google to actively compete and spend [10] - The decision allows Google to potentially raise prices on services like Gmail without the same level of antitrust scrutiny [15] AI & Competition - Google is positioned as an AI beneficiary, with decades of experience and viable products, despite existing competition [4][5] - The ruling allows Google to defend against potential market share loss in search due to emerging AI technologies [12] - The valuation of Google's AI ventures, such as Gemini and Google Cloud, could increase significantly, potentially mirroring the growth of OpenAI's valuation to over $500 billion [9] Market Dynamics & Comparisons - Meta (Facebook) is presented as a comparable stock, with potential for multiple expansion and earnings growth similar to what Google may experience [19][20][22] - Rising long-term yields in the broader market may pressure long-duration stocks, including mega-cap tech companies [24][25]