Disclaimer - Nothing in this post is financial advise
In this article, we will give you 5 reasons why everyone should hold Alphabet Inc.(Ticker: GOOG) in its portfolio and why now could be the right time to start a position.
Revenue doubled in recent years
Alphabet managed to nearly double its revenue from $136,819.00 to $257,637.000 million between 2018 and 2021.
This also helped increase its price per share from 1,169 to 2,716 which represents a staggering 132% ROI in only 3 years.
Alphabet the growing cloud giant
Google Cloud currently ranks as 3rd largest cloud service in the world with a 9% market share after Amazon AWS(33%) and Microsoft Azure(22%).
Revenue in cloud service saw an impressive jump of 44% in the companies latest earnings report, growing faster than its competitors Amazon AWS and Microsoft Azure.
Alphabet is cheaper than other tech giants
With a PE/Ratio of 19.90 and a PEG ratio of 0.77, Alphabet is ranked cheap compared with Microsoft Corporation(Ticker: MSFT) which has a PEG ratio of 1.75 and Apple Inc. (Ticker: AAPL) with a PEG ratio of 2.42.
With a current share price of $2,290.47, shareholders sit at a loss of 24,72% since Alphabets 52 week high at $3,042 and near its lowest valuation in the past decade.
Analysts are confident in future earnings
Upcoming growth per year is estimated at 14.34% with sales estimated to grow 14.90% in 2023 according to analysts.
Analysts also seem to be confident that Alphabet can mark new all-time highs with an average estimated share price of 3,077.00 according to yahoo finance.
A stock split could attract new investor's money
Alphabet has announced a 20-for-1 stock split, which takes effect after the close of business on July 15.
Due to the lower price per share as consequence of the stock split, GOOGL stock could be more attractive to retail investors, as we've seen after similar stock splits over the last years.
Bottom Line
Looking at the numbers, Alphabet stock seems to be relatively cheap right now. Its growth in recent years was impressive, to say the least, and future estimates look promising. With the upcoming stock split, we could also see a new wave of retail investors grabbing Alphabet stocks.
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