This Is the Real Reason Alphabet Stock Looks Cheap (and It’s Not … – The Motley Fool
The digital ad market is maturing, and ad demand could be down for at least another year.
Early in February, Alphabet (GOOG 1.85%) (GOOGL 1.79%) stock fell by 12% over a two-day span after Microsoft unveiled its new ChatGPT-powered version of the Bing search engine and Alphabet botched the introduction of Bard AI, its competitor to ChatGPT.
Since then, the conventional wisdom seems to be that Alphabet stock has become oversold due to an exaggerated threat from its big tech rival. However, the stock has drifted lower since then amid broader pressure on the tech sector.
According to most conventional metrics, Alphabet stock does look cheap. Its price-to-earnings ratio is roughly 19, and analysts expect solid growth from the company both this year and next, seeing earnings per share increasing to $5.09 in 2023, then jumping by 20% next year to $6.11. That means the stock is trading at a price-to-earnings multiple of 15 based on next year’s expected earnings. The stock is even cheaper…
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source: https://news.oneseocompany.com/2023/03/04/this-is-the-real-reason-alphabet-stock-looks-cheap-and-its-not-the-motley-fool_2023030441449.html
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