If you are looking at making high profits from buying stocks but are clueless about which stock to buy, you might want to focus on Alphabet stock.
Previously, we here at PVP Live reported the news about Alphabet (GOOG, GOOGL) being the stock you should invest in and hold forever. Now, financial experts are saying that Alphabet stock is the best tech stock to buy right now.
“Fortunately, it’s not all bad news for the tech giants. There is one of the huge tech companies that is on sale and available to investors at a fine entry point today. That would be Alphabet,” said Ian Bezek on the stock market news website, InvestorPlace.
Bezek also listed Apple (AAPL), NVIDIA (NVDA), and GOOGL stocks as artificial intelligence (AI) stocks to buy before they skyrocket but singled out GOOGL stocks as the best tech stock to buy.
The stock and AI
Alphabet stock is merely flat over the previous 12 months, compared with the stocks of Apple and NVIDIA, but this is from the activities of investors. GOOGL stock was a little bit down before its recent rebound, and this is due to worries from investors that ChatGPT and other AI solutions may disrupt Google Search, so they drop GOOGL stock.
But according to Bezek, investors looking at investing in GOOGL stock should not be unfazed. He says dropping Alphabet stock just because of other AI solutions is a “misguided line of thinking.”
Bezek explained that, for one, the use cases between most queries from ChatGPT and Google are pretty distinct. Another point is that people may forget that Alphabet itself is a leader in other innovations, such as next-generation technologies that include quantum computing.
Alphabet is also doing its job when it comes to AI. With the launch of the powerful ChatGPT, the company did not let itself be left behind. In fact, Alphabet launched its very own AI tool, called Bard, last March, which PVP Live also reported about.
Today, Bard is more intelligent and accessible in English and many other languages almost worldwide. Google said it will also start implementing this AI tool into its wide range of applications. So, instead of worrying that Google’s AI is just second-rate, think about the fact that Alphabet can make huge profits from it.
Moreover, GOOGL stock is selling at a mere 22 times forward earnings. Alphabet is likewise buying back enormous chunks of stock, providing support should tech stocks experience another correction again.
Keeps going up
Plus, shares of Alphabet kept marching higher today on moderately good news out of Wall Street.
At 10:15 a.m. ET trading, they were up two percent and up as much as 3.1 percent earlier today, making the company’s shares touch a 52-week high.
“At 25 times free cash flow and with a 17 percent growth rate, Alphabet is a better-than-average bargain on the stock market,” wrote Rich Smith of the private financial and investing advice company, The Motley Fool.
