Google Looks Like a Good Deal
Looking for the best big tech stock to buy? Look no further than Google. Alphabet, the parent company of Google, is a better deal than it seems on paper right now. Yes, it is trading for 24x forward earnings, a 50% premium to the S&P, but it has some very strong redeeming qualities. Get this-revenue growth at Google has raged from 21% to 25% per quarter for the last 14 quarters. Further, the important thing about that valuation metric above is that it does not include Google's massive $105 bn in cash. If you strip that out, along with the loss from its "moonshots" division, and Alphabet is trading at 19x earnings-not bad for a company with that kind of growth! The stock has been beat up lately because of significantly higher spending, which has hurt margins.
FINSUM : Okay, so margins are down a bit, but the c-suite says they are investing for the future. We think this may present a good buying opportunity.
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