| | | Re: Alphabet - GOOG - GOOGL ...
Valuentum really likes Alphabet here.
Concluding Thoughts
Overall, we liked what we saw in Alphabet’s latest earnings update. The company is responding to the changing macroeconomic landscape in a reasonable manner and by 2023, management expects these efforts will be reflected in Alphabet’s bottom-line. Alphabet’s growth story isn’t over, far from it, as its exposure to secular tailwinds (digital advertising, cloud computing, self-driving car technology via its Waymo unit, AI, the Internet of Things trend, cybersecurity, work collaboration activities, and much more) underpins one of the best investable growth stories out there, in our view. The company grew its revenues by double-digits last quarter, even in the face of myriad exogenous shocks and tough year-over-year companions. That is stunning.
We like Alphabet as a top-weighted holding in our Best Ideas Newsletter portfolio given its bright growth outlook, fortress-like balance sheet, immense pricing power given the differentiated nature of its offerings, and ability to generate “gobs” of free cash flow in almost any operating environment. Efforts to improve its cost structure should help Alphabet meaningfully expand its operating margins going forward. Shares of Alphabet are trading well below our fair value estimate as of this writing, and we see ample room for capital appreciation upside potential going forward. Recently, it seems the market has started to warm back up to Alphabet.
Source:
Valuentum.com |
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