META - Google: The Recent Surge Is Far From Over
2024-05-09 08:30:00 ET
Summary
- I had predicted that the AI FOMO surge would reach Google soon.
- The recent explosive surge in GOOGL stock played out as I had anticipated.
- The market finally realized that Google's tech stack allows it to monetize AI at scale.
- Google's ability to drive down AI-related costs while scaling up across Search, YouTube, and Cloud is remarkable.
- GOOGL stock's valuation gap with META stock has finally closed, and deservedly so. I explain why you should consider staying invested.
My Prediction On GOOGL Stock Played Out
I've maintained my Strong Buy rating on Google ( GOOGL ) ( GOOG ) stock since October 2023, as I assessed the market was too pessimistic about Google's prospects. I reiterated my strongly bullish thesis on GOOGL in early February, urging investors to buy before GOOGL enters FOMO mode. The FOMO mode was triggered in the past three months, as GOOGL stock significantly outperformed the S&P 500 ( SPX ) ( SPY ). Google's Q1 earnings release underscored the AI revenue growth inflection in Google's well-diversified business model. In addition, it also underscored my conviction about the market's unjustified pessimism....
Google: The Recent Surge Is Far From Over