Google is by far the most attractively valued company within the Mag7, has a massive moat, solid, proven leadership and very promising ventures. Alphabet is a conglomerate that consists of several parts: Google Search (has the biggest revenue share, but still considerable growth of over 10%), YouTube (high growth), Google Cloud, as one of the three dominant cloud platforms (very high growth rates around 30%) and Google Hardware and subscription services that are rather stagnant. $GOOGL is currently trading at a forward P/E ratio of 17, which is incredibly cheap for a cash-producing monster and Internet giant with massive growth potential through high growth businesses like Cloud, autonomous driving and further AI development. The fear of Google Search being completely disrupted by AI models is probably overblown in the first place and even if LLMs will replace traditional search eventually that’s going to be a long continuous process and until then Google’s other ventures should already have pay off and create a considerable share of revenue.
