I think Alphabet (GOOGL) is the most undervalued stock in the stock market right now

I am 100% invested in Alphabet due to several reasons. I think we are in a similar situation to Meta when it was faced with law suits, reached 90$ last year and everybody said it would die.

1. Alphabet is growing in the double digits every year since its inception. Its PE is on the way to below 20 and laughably cheap for a tech company with that growth.

2. They crushed earnings and the only reason for their slump afterwards was their heavy AI spending, which they can easily cut if they see its not worth it anymore. Also comparable to Meta.

3. Alphabet is a leader in innovative technologies such as autonomous driving. Tesla shot up 40% or something when Elon made another promise towards autonomous driving, while Google actually is the first mover and build up a network with hundred thousands of paying users.

4. I dont think that AI will be as useful as some still expect. But in no way Google is endangered by that. I dont have more recent numbers, but in July Googles market share in the search business grew slightly, while ChatGPT declined by 12%. I think the summarised answers in Google search are already way more useful and convenient than what Bing or ChatGPT offers.

5. If AI presents itself as useful Google and Meta will have the best model. People misunderstand how AI works. Its not the model which is important, its the underlying set of data. With the deal it closed with Reddit beginning of 2024, google honestly struck Gold for a really cheap price.

6. Tech companies are literally what keeps the american economy and influence in the world right now alive. I think its not realistic to think that the DOJ will do anything which substancially weakens an american tech company at this point. They will probably get a slap on the wrist in a way of a (big) fine. But priced in is currently a potential break up.

7. Atleast for the next earnings I expect an ad revenue “short squeeze” because of the really polarized american election. Way more money will be invested in ads than in previous elections, and while the sum on its own isnt that much, depending on how elastic the ad market is, it will drive up ad space for everyone involved.