Alphabet Stock Offers Value Despite Slowing Growth
• Alphabet (Google) is the only "Magnificent Seven" mega-cap tech stock with a lower P/E ratio than the S&P 500 index.
• Alphabet offers a combination of growth and value, generating strong cash flows to fund expansion and buybacks.
• However, Alphabet's growth has slowed recently compared to peers, especially in cloud computing and AI.
• Microsoft and others seem better positioned to capitalize on generative AI and enterprise adoption.
• Still, Alphabet's valuation discount to Big Tech peers and the overall market seems overdone based on its fundamentals.