Alphabet (NASDAQ:GOOG) is considered one of the top Magnificent 7 stocks in the current market due to its strong mix of growth, valuation, and long-term performance. With a market value of $2.2 trillion, Alphabet may not be considered cheap with a price-earnings ratio of 27.5 and a yield of 0.45%. However, the company’s core business model is top-notch, evidenced by its 15% revenue growth and 57% net income growth over the past year.
One key factor that sets Alphabet apart is its significant opportunity in the artificial intelligence (AI) market. While companies like Nvidia (NASDAQ:NVDA) may be more focused on AI, Alphabet is deeply integrated across all AI value chain layers, positioning it well to capitalize on the projected $1.2 trillion AI market by 2027. Additionally, Alphabet’s expansion in Cloud, Other Bets, Video, and other ventures are seen as undervalued by the market.
YouTube has been a driving force behind Alphabet’s growth, with the company continuously enhancing its features and expanding its reach through partnerships. The redesigned YouTube Music and other enhancements position Alphabet to take advantage of the growing music streaming market.
Despite facing challenges in 2022, Alphabet’s core businesses have shown improvement, making it a strong contender among the Magnificent 7 stocks. While Alphabet and Nvidia are top stocks in different sectors, DailyBubble believes that Alphabet’s macro, competitive, and regulatory outlooks make it a solid long-term investment. With an attractive valuation and strong growth prospects, GOOG stock remains a top pick among the Magnificent 7 stocks.
In conclusion, Alphabet’s strong performance, growth opportunities in AI and YouTube, and solid core businesses make it a buy in DailyBubble’s opinion.