Alphabet: Won't Be This Cheap For Long

The market is getting increasingly skeptical about Google's declining free cash flow margins. I think the market is overreacting. I believe Google is investing aggressively in AI from a position of strength, not one of weakness. Google has been able to infuse AI pervasively across its ecosystem, and it is not looking to slow down. Google Cloud's AI backlog has now grown to $514 billion, and it could convert >50% over the next 24 months. I strongly urge investors to ignore the market's myopia, as the derating in its multiple has now reached highly appealing levels.

Market worries about Google's AI CapEx outlays. Should it? The moment of reckoning for Google shareholders ( GOOGL ) ( GOOG ) continues to worsen as the sell-off in the Nasdaq ( NDX ) ( QQQ ) and This article was written by JR Research 48.92K Followers Follow JR Research is an opportunistic investor. I was recognized by TipRanks as a Top Analyst, and also by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. I identify attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. My picks have consistently demonstrated market outperformance over time. My approach combines timely and sharp price action analysis with fundamentals as my foundation. I also tend to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. I run the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. My main ideas revolve around stocks with strong growth potential, and also well-beaten contrarian plays. I designed the group for investors seeking to capitalize on growth stocks with solid fundamentals, robust buying momentum, and appealing turnaround plays to generate alpha consistently. Learn more