There’s no denying it: Google and YouTube parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is, like many other technology names, out of favor on Wall Street. However, this isn’t a valid reason to give up on GOOG stock. Alphabet’s still a tech leader and innovator, and if you don’t take a share position now, you’ll probably regret it in a few years.
Even the perma-bears must acknowledge that Alphabet and Google have come a long way. If anyone still thinks these companies are just search-engine specialists, they have a lot to learn.
From self-driving technology to cloud computing and even Web 3, Alphabet and its subsidiary businesses span diverse tech fields. Hence, you can instantly broaden the scope of your portfolio and get compelling value by investing in Alphabet.
What’s Happening With GOOG Stock?
GOOG stock topped out at around $150 in late 2021, and it should revisit that level in 2023 or 2024. Furthermore, it’s not unreasonable to predict that by 2025, the shares should trade at $200 apiece.
Value seekers should be glad to know that Alphabet’s trailing 12-month price-to-earnings (P/E) ratio is quite low at 17.85x. Such a low valuation was unimaginable in late 2021, so the pullback in the Alphabet share price is an opportunity, not a problem.
The last time GOOG stock pulled back, which was during the Covid-19 crisis of 2020, it then proceeded to nearly triple in price. Thus, the stock is capable of rallying from its current price to $200 in 2025 and probably higher than that.
Don’t just perform mathematical price calculations, though. Check to see what Alphabet has been up to — and without a doubt, you’ll be convinced that the company is as ambitious as it’s ever been.
Alphabet Is Active in Multiple Tech Areas, Including Autonomous Driving
As important as the Google search engine and YouTube video platform are, there’s more to Alphabet than these legacy businesses. Truly, today’s GOOG stock investors are wagering on a tech giant with clout in multiple high-conviction fields.
For instance, Bloomberg reported that Rishi Ramchandani, former BlockFi vice president for Asia, will be Google’s APAC Web 3 lead. BlockFi’s loss will be Google’s gain as Ramchandani could help Google develop web applications based on cutting-edge blockchain technology.
Also, Google Cloud revealed that it has earned Department of Defense Impact Level 5 provisional authorization. This will allow Google Cloud to “support additional workloads for U.S. public sector customers.” It’s another feather in the company’s cap as it garners a broad array of public-sector authorizations.
On top of all that, Alphabet subsidiary Waymo has applied for a permit to sell fully autonomous rides in California. Waymo has already been transporting passengers in self-driving cars in San Francisco since May, but “with a human back-up driver present,” Reuters reports. If Waymo can secure a full permit from California for driverless rides, this could position the company as a niche-market leader in the state.
Here’s My GOOG Stock Price Prediction for 2025
It’s definitely not asking too much of GOOG stock to hit $200 by 2025. Alphabet’s valuation is low, and the post-Covid-19 rally demonstrated how far the stock can run.
Besides, Alphabet and its business divisions are pushing the boundaries of what technology can do and where it can go. Therefore, enterprising value hunters should seriously consider a multi-year position in Alphabet, with a target of $200 or more.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
