Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), a dominant force in the technology sector, boasts a substantial market presence in search via the company’s core Google Search and YouTube businesses. With robust earnings growth and a 150% surge in GOOG stock over the past five years, the company’s strategic investments in research and development, along with AI advancements like Gemini, position it for sustained growth.
Alphabet seems well-prepared to meet or surpass earnings projections for 2024, with a sell-side consensus projecting approximately $6.66 per share, signifying a 16% increase from 2023. While not as robust as recent quarters, this growth is likely adequate to maintain GOOG stock’s current valuation (around 25 times earnings). The potential for a 16% share gain, coupled with increased earnings, is noteworthy.
Investing in Alphabet stock is a prudent addition to a portfolio.
Job Cutting Starts
Google is facing criticism from a union for cutting “needless” jobs in teams handling projects like Fitbit, Google Assistant, and hardware. The tech giant confirmed that “a few hundred” roles will be eliminated, emphasizing responsible investment in its key priorities. The Alphabet Workers Union opposes these cuts, deeming them unnecessary.
Despite union protests, Google defended recent job cuts, stating efficiency improvements and realignment with major priorities. The tech giant reassured support for affected employees, emphasizing ongoing profitability with $76.3bn in Q3 2023 revenue and $19.7bn net income.
More Streamlined Google Workspace
Google has streamlined document sharing in Docs, Sheets, Slides, and Drawings with a new dropdown menu, replacing the full-screen popup. Users can access sharing options through a simple dropdown, enhancing efficiency without disrupting workflow. The menu includes checking access requests, copying shareable links, and viewing permissions.
The enhanced sharing feature in Google Workspace will be available to all users in the coming weeks, including personal Google account holders. Google Drive now enables users to create links directing viewers to specific video timestamps. Additionally, Google Calendar integrates with Drive for seamless file sharing during calendar meetings.
Excellent Company Standing
GOOG stock, boasts lower risk compared to typical growth stocks, attributed to its advertising industry dominance with leading platforms like Google and YouTube. Over the past five years, Alphabet has outperformed, securing a remarkable 160% return and maintaining robust profit margins.
Alphabet concluded Q3 with an 11% year-over-year revenue growth and a 41% year-over-year net income increase. Google Cloud’s revenue surged from $6.9 billion in Q3 2022 to $8.4 billion in Q3 2023, outpacing advertising growth. This diversification strategy, including Google Cloud and Pixel smartphone sales, positions Alphabet for further expansion.
While not likely to rival top smartphone players, Alphabet’s Pixel is gaining momentum with 40 million all-time sales since its 2016 launch.
Buy GOOG Stock Now
Alphabet’s robust stock performance, driven by Google Chrome’s dominance, positions it as an AI market frontrunner with a projected 2024 revenue of $340.61 billion. Alphabet’s strong market standing, ample cash reserves, and favorable valuation make GOOG stock an enticing investment choice. With substantial liquidity and an appealing valuation, Alphabet remains an attractive choice for long-term investors.
On the date of publication, Chris MacDonald 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.
