Why Buy Alphabet Stock

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Why Buy Alphabet Stock

Why You Should Buy Or Sell Alphabet (Goog) Stock

Alphabet (GOOG) has gone from just another tech company to a giant worth $3 trillion. In this process, Alphabet (GOOG) stock has also made a lot of investors very rich.

In just a span of 3 months, the Alphabet (GOOG) stock has surged more than 45%. So, does this mean you should buy Alphabet (GOOG) stock? Yes, you should definitely buy Alphabet (GOOG)!

Alphabet (Goog) P/E Ratio Is 23.3

When it comes to buying Alphabet (GOOG), investors shouldn't overthink at all. After all, they get to buy one of the elite businesses of the world at a reasonable price.

Right now, the forward P/E ratio of Alphabet (GOOG) is around 23.3. This makes the Alphabet (GOOG) stock just a little expensive than the famous S&P 500 index.

But we must also consider the fact that Alphabet (GOOG) is a strong company with a diversified business portfolio. So, it makes sense to pay a small premium to buy the stock.

Alphabet (GOOG) is also a big player in the AI race and is involved in AI research. In fact, Alphabet (GOOG) is also making its own AI chips.

And last but not least, Alphabet (GOOG) also has its own cloud platform where users can get AI tools and services. On top of that, all of the Google products and services have AI integration.

But the biggest benefit of all is that the economic moat of Alphabet (GOOG) is very broad. Also, the company collects a lot of data that could be used to train new AI models.

The Alphabet (GOOG) is also very profitable ,as the recent data showed they have an operating margin of almost 32%. So, if you are thinking of buying a tech stock for the long term, look no further than Alphabet (GOOG).

If you can buy and hold the Alphabet (GOOG) for the next 5 years, you could easily generate a healthy return. Even at the current prices, Alphabet (GOOG) stock looks very attractive given its strong position in the AI space.

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