Alphabet: I'm Nibbling Here

2025-03-21 11:42:54 ET

Summary

• The current market dip offers a rare opportunity to buy high-quality stocks like Alphabet at a 20% discount.
• Alphabet's robust 2024 earnings, driven by strong growth in search, cloud, and media, justify expanding my position by 15%.
• Alphabet's cloud division saw a 250% surge in operating income in 2024, with expectations of 75-85% growth in 2025.

The Tariff talk in the market has presented an opportunity available less than once per year…, 20% discounts on high quality companies. And when those times come, you have to take advantage, especially with the Magnificent 7 stocks. Alphabet, one of the two magnificent 7 stocks that I own, is down over 20% since reaching its all time high in late January 2025. So, as any good investor with a long time horizon would do, I’m nibbling here. Expanding my position by almost 15% over the past few weeks as the stock has entered the $160s. The full year 2024 earnings report was robust and demonstrated the company’s dominance in multiple markets like search, cloud and media - all growing revenue double digits since 2023. Group operating income grew over 26% with EPS growth just shy of 40% lofted by plentiful share buybacks of over $60bn....

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