Alphabet: Valuation Lags Behind Fundamentals

  • Alphabet's investments in AI and cloud, strategic partnerships, and Waymo's robotaxi project position it for long-term growth and profitability. Valuation analysis using a DCF model and low valuation ratios indicate a compelling 25% upside, with a fair value of $2.4 trillion. Despite uncertainties in AI profitability and competition, Alphabet's robust fundamentals and strategic initiatives justify a strong buy rating.