- Alphabet Inc. aka Google reported a strong Q3 double beat, with compelling business growth and margin expansion, trading at an undemanding valuation.
- Alphabet’s mid-teens revenue growth rate is highly attractive, especially compared to peers like Apple, showcasing its strong business model and competitive moat.
- Google Cloud’s revenue grew by 35%, with profits jumping sevenfold, significantly boosting Alphabet’s overall operating profits and margins.
- Despite AI and regulatory risks, Alphabet’s growth, low valuation, and strong cash flow make it the most attractively valued Mag 7 stock.
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Article Thesis
Alphabet Inc. aka Google (NASDAQ:GOOG, NASDAQ:GOOGL) reported a strong Q3 double beat on Tuesday afternoon. The company showed compelling business growth while margin expansion continued. All in all, this was another successful quarter for Alphabet, which continues to trade at a very undemanding valuation.
Past Coverage
I have written about Alphabet in the past here on Seeking Alpha, with this being my most recent article, in which I upgraded Alphabet from a “Buy” to a “Strong Buy” due to overblown pessimism that made Alphabet’s shares very inexpensive. So far, this has worked out well, as Alphabet has risen by 13% since that article was published, not including Tuesday’s post-earnings share price jump. With Alphabet reporting another earnings report that looks strong and that, in my belief, underlines that fear about business risks are overblown, it is time for an update on the company.
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