Alphabet's AI and Reach Fuel Growth Prospects in Digital Ads and Cloud
• Alphabet (Google) is a dominant player in digital advertising and is gaining market share in the fast-growing cloud computing industry. Its AI and machine learning capabilities give it an edge.
• The digital advertising and cloud computing markets are forecasted to grow around 10% and 17% annually over the next decade, fueling growth for Alphabet.
• Alphabet stock currently trades at a relatively cheap 5.9 times sales compared to historical averages of 6.4, presenting a buying opportunity.
• Alphabet subsidiaries like YouTube, Android, and Google Search reach over 2 billion users globally, providing a vast amount of data to improve its AI and advertising systems.
• Investors with a 5+ year time horizon should feel comfortable buying a small position in Alphabet stock today to benefit from its long-term growth prospects.