Google Stock The Best Buy Of Magnificent 7 - $250 by 2026!

Google's stock is considered a good buy due to its low P/E ratio, consistent growth, and projected future earnings. Despite potential risks from antitrust lawsuits and AI advancements, Google's continued growth in areas like cloud computing and search suggests a strong future, with a projected stock price of $250 by 2026.

Google's Stock Price & Valuation

• 00:00:00 Google's stock has a P/E ratio of 22, significantly lower than competitors, and is considered undervalued compared to its growth. The stock price has been impacted by recent antitrust investigations and lawsuits, but the company continues to grow revenues and earnings, with a projected earnings per share of $10 in 2026 and a potential stock price of $300.

Google's Business Growth & Prospects

• 00:00:36 Google's business continues to grow at a rate of 15-16% annually, with a strong growth rate in cloud computing at 45%. The company's revenue growth is also driven by Google Search, with a 14% increase. Future earnings growth is anticipated to be around 10-14%, but risks include recession and a decrease in advertising spending.

Risks & Concerns for Google

• 00:02:53 The main risk for Google is the potential impact of artificial intelligence (AI) on its business. AI advancements could shift search queries to other platforms and potentially disrupt Google's dominance. However, Google is investing significantly in AI, which may allow it to maintain its position.

Set Claran's Trading Strategy

• 00:05:11 Set Claran, a value investor, has demonstrated a successful trading strategy with Google's stock. He tends to buy Google when the stock price is low, often during market panic, and sells when it rises. This strategy highlights the potential for profitable trades based on market fluctuations in Google's stock price.

Investment Recommendation

• 00:06:59 The presenter considers Google a good buy, particularly within the context of the Magnificent 7 stocks, given its growth potential and valuation. However, the presenter personally chooses to allocate investments elsewhere due to concerns about AI's future impact and a desire for more concentrated investment positions. The decision to invest in Google is ultimately dependent on the individual investor's risk tolerance and preferences.