Alphabet Inc. (NASDAQ: GOOGL) offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

finviz dynamic chart for GOOGL

Company Overview

  • Market Cap: 1.689 trillion
  • PE Ratio: 23.25
  • EPS: 5.80
  • Average Analyst Rating: 1.9 Buy (13 Strong Buy; 25 Buy; 3 Hold)

Alphabet Inc., the California-based multinational tech giant, utilizes AI in Google’s search engine, Google’s Ads and Doubleclick, Google Maps, Gmail, Google Drive, Google Calendar, Google Translate, among others.  It acquired over 30 AI startups since 2009 including PittPatt, DeepMind, Onward, and AppSheet. One of the most recent acquisitions of the company was the smartwatch company Fitbit. 

Alphabet’s commitment to integrating AI across its suite of advertising products underscores its strategic vision. Alphabet’s measured approach to AI integration should keep the company near the absolute top of consumer-facing online services for years to come. At the same time, the stock’s modest gains during the AI surge suggest an underappreciated upside. Trading at a modest 23 times earnings with stock gains barely beating the broader market in the last 16 months, Alphabet’s stock isn’t getting the AI-based respect it deserves from market makers.

The company’s innovations, particularly in making advanced AI tools accessible to a broader range of advertisers, position it to leverage the next wave of AI advancements. For investors, Alphabet is not just keeping pace with AI evolution but is actively leading it. This company’s role in the digital economy could become even more indispensable over time. Since Alphabet looks like an undervalued AI titan today, Alphabet is the best AI stock to own for long-term.

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