Buy Alphabet stock now?

For the past three months. (math.) genusAlphabet （Nasdaq Resonance Stock Code (GOOGL) (NASDAQ: GOOG) share price It's like being on a The retailer has been on a rollercoaster ride, growing and then dropping, and has risen about 11% year-to-date in 2024. in recent weeks, the stock has risen in response to renewed investor enthusiasm for the company's prospects.

In fact, it's only "The Seven Giants"Stocks are currently making historyNew highs.This may discourage some investors from including the company in their portfolios. But given Alphabet's performance over the next few years, it's important to take a fresh perspective.

In that case, is it time to buy the stock?

Leading the Internet

With a history spanning more than two decades, a current market capitalization of nearly $2 trillion, and revenues of $307 billion by 2023, it's easy to see that Alphabet is a dominant Internet company. Over the years, Alphabet's success has come from having some of the most popular services in the world.

Google Search accounts for 91% of the global market. It is the company's crown jewel, generating 57% of all sales last year. And then there's YouTube, which has an estimated 2.5 billion subscribers. Nelson.The data show that(math.) genusThis top-rated entertainment service has attracted more viewing hours than any other television service in the world. NetflixThe

We can't forget about Google Cloud. The third-largest company in the cloud computing market posted 26% of revenue growth in the fourth quarter. Moreover, it has had four consecutive quarters of positive revenue growth.

Investors were worried that Alphabet would fall behind in the artificial intelligence (AI) race as some of its early product launches stumbled. Investors seem to have put those fears behind them, as evidenced by a March rally of 10% in the stock price.

I think this is the right mindset. As a longtime be located atleading technology and Internet companies. Alphabet With unlimited financial resources, massive amounts of data, and products and services used by billions of people. In the War on Artificial Intelligence(math.) genusMaybe not. which company surpasses Alphabet change or replaceAdvantageous The

Growth and Valuation

Even if Alphabet's share price is close to an all-time high, investors will surely consider the current valuation to be justified. The stock's Forward price-to-earnings ratio 22.8. This is the same as the Standard & Poor's 500 Slight premium over the indices . However, this price is discounted compared to all other "Magnificent Seven" similar companies.

At this compelling valuation, investors are getting a business that is expected to continue to grow at a solid pace. According to Wall Street analysts' consensus estimates, Alphabet's average revenue and earnings per share will grow by 10.6% and 15.9%, respectively, over the next three years, and if the valuation multiples remain unchanged, which is a very likely scenario, shareholders are in for a treat.

While it's usually wise to take analysts' forecasts with a grain of salt, I think they're credible in this case.Alphabet has a lot of strong secular tailwinds working in its favor.

The company is benefiting from more Internet users and higher per capita usage around the world. The world is becoming increasingly digital, a trend that should help Alphabet find ways to generate more advertising revenue.

Streaming entertainment is another area where Alphabet will reap the rewards. No one can say for sure how the so-called streaming war will end, but it is reasonable to assume that YouTube will remain the preferred choice of viewers.

Grand View Research estimates that by 2030, the cloud computing market will be worth nearly $1.6 trillion. With Google Cloud, Alphabet has a formidable rival in the industry. The field has already attracted Wendy, Bloomberg and Babe.Famous Customers The

Investors shouldn't think too hard about it. Adding Alphabet to your portfolio today looks like a smart financial move.

Should you invest $1,000 in Alphabet now?

Before buying Alphabet stock, consider the following:

Motley Fool Stock AdvisorThe analyst team has just selected what they think is the best name for investors to buy now.10Only ...... and Alphabet is not one of them. The 10 stocks that made the list could generate huge returns in the coming years.

Consider April 15, 2005NvidiaOn the list ...... If you invest $1,000 at the time of our recommendation, theYou will have 545,088dollar! * *The

Stock AdvisorIt provides investors with an easy-to-understand blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. Stock Advisor The service has contributed to the S&P 500 Index's return since 2002.translate twiceMuch*.

View 10 Gift Certificates

*Stock Advisor's Report as of April 4, 2024

Alphabet CEO Suzanne Frey is a member of The Motley Fool's Board of Directors, and Neil Patel has no position in any of these stocks. Neil Patel has no position in any of the stocks mentioned above. the Motley Fool holds recommended positions in Alphabet, Netflix, and PayPal. the Motley Fool recommends the following options: PayPal March 2024 $67.50 call option short. the Motley Fool has an information disclosure policy. The Motley Fool has a disclosure policy.

Buy Alphabet Stock Now? This post was originally published by The Motley Fool.