GOOGL - Google: An Undeniable Leader In AI

2024-05-19 20:00:00 ET

Summary

• Google has rebounded after initial AI missteps, but it is no longer a deep discount at its current price.
• The biggest threat to Google is generative AI technology from OpenAI and Microsoft, which could replace valuable searches on Google.
• Google's Search and Cloud segments are reporting accelerating growth, indicating that AI is boosting revenue or at least not impacting the business negatively.
• The stock is still attractively valued at only 17x adjusted EPS targets, especially compared to other tech giants.

The stock market has spent the last year predicting the demise of Alphabet Inc. ( GOOG , GOOGL ), aka Google, due to the generative AI threat from OpenAI. Google has long been a leading investor in AI technologies and despite the company fumbling some initial AI releases, the company appears back on track after the I/O developer conference . My investment thesis remains Bullish on the stock, though the recent rally above $175 doesn't offer the deep discount anymore....

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