The ONLY Stock I’m Buying TODAY.
As we await Nvidia’s earnings report next week, the market is struggling to find a major directional catalyst. Despite an uncertain economic environment, many of my favorite holdings are floating near all-time highs, many of which are ballooned valuations. One stock that continuously trades at undervalued levels is Alphabet Inc. (GOOGL), and I’ve been buying shares hand over fist. Following a -10% YTD performance, shares of GOOGL are trading at a PE ratio of just 19, well below the tech industry average of 31. With many Wall Street price targets reaching into the $200 handle, I don’t see why Google can’t reach a fresh all-time high by July.
Competitive Risk:
Google investors’ largest concern is an AI takeover – which is understandable. If OpenAI or xAI can create a Google-like browser, that would be a huge competitive feud. With every waking moment, Google’s competitive advantage slowly sinks, as the entire business world races to monetize AI. But, not only would the browser need to be better than Google, but they’d need to flip decades of market moat. Not to mention the fact that Google could turn around and use this development to refute any possible regulatory lawsuits. In spite of market turmoil and uncertainty, Google posted a flawless earnings report a month ago – citing a record EPS, and a $90 billion quarterly revenue on the backs of strong cloud and Google services growth. Competition has yet to rattle Alphabet’s bottom line, as report numbers outperform estimates, and management sentiment is continuously confident in their ability to outperform, outgrow, and outdo their competition.
Google’s Innovation:
Google continues to lay the groundwork as a cornerstone of innovation and technological advancement, as seen in plain view at yesterday’s I/O 2025 event. At which Google unveiled a suite of groundbreaking advancements, with a strong emphasis on AI integration across its product ecosystem.
Google introduced a transformative "AI Mode" for Search, powered by the Gemini 2.5 Pro model. This feature offers users a more conversational and intuitive search experience, enabling complex, multi-part queries and providing comprehensive, AI-generated responses. “This enables Search to dive deeper into the web than a traditional search on Google, helping you discover even more of what the web has to offer and find incredible, hyper-relevant content that matches your question,” Google said. Google’s Gemini 2.5 model introduces "Deep Think," an enhanced reasoning mode designed to tackle complex problem-solving tasks. Complementing this is Project Astra, an experimental AI assistant capable of real-time interactions through camera inputs, aiming to provide proactive assistance across various applications. Importantly, Google’s Gemini app now has over 400 million monthly users. Despite the marketing for Gemini being subpar in my eyes, this is an impressive figure and one to watch closely. If the Gemini app can compete with Grok and ChatGPT, that will lessen Google’s competitive risk exposure, and boost them beyond current expectations.
Google’s reach continues to impress, as they partner with Warby Parker to battle Meta in the AI-powered glasses industry. Previous attempts from Google in the smart-glasses space weren’t necessarily well received, but this partnership hopes to mirror Meta’s success with Ray-Ban. As part of the partnership, Google will provide up to $75 million to Warby Parker for product development and commercialization, and it plans to invest up to another $75 million in the eyewear company.
Tesla CEO Elon Musk joined David Faber on CNBC yesterday to discuss robotaxi implementations. After pushing back the launch date for nearly half a decade, Musk cheerfully announced that a dozen robotaxis will hit the streets of Austin Texas next month. Meanwhile, Waymo has a fleet of 700 vehicles which just hit 10 million driverless rides across Phoenix, San Francisco, Los Angeles, and Austin – with Atlanta and Miami coming soon. It’s clear that Waymo is the current industry leader here, as Tesla’s FSD and ride-hailing capabilities are still at a much lower development stage.
Google’s Verticals:
For a PE valuation 30% lower than the S&P 500 itself, you can own…
The leader in internet search and ad revenue.
A leader in AI integration.
A leader in technological consumer products.
The leader in driverless robotaxis.
A near monopoly on video search (YouTube).
The leader in quantum computing development.
A leader in cloud computing.
& more.
All in one company.
Alphabet Inc. (GOOGL) is a no-brainer for me, and is one of the only stocks I feel comfortable buying in the current market environment.
*None of this newsletter and/or any subsequent content pieces are financial advice. This newsletter and/or any subsequent content pieces are all intended for entertainment and educational purposes only. Please invest wisely under your own accord.*