I recommend buying Alphabet shares after 4Q24 earnings
Despite mixed results, YouTube performance and fair valuation make Alphabet a compelling buy
Investors may be feeling uncertain after Alphabet’s recent 4Q24 earnings report, which showed some mixed results. With a net revenue of $96.47 billion, there was a slight miss on expectations. The cloud business also underperformed, raising concerns about Alphabet’s growth in that area.
However, it wasn’t all bad news. Both search and YouTube ad revenue showed strong performance, indicating that Alphabet’s core businesses are still going strong. YouTube, in particular, continues to be a powerhouse in the digital advertising space, making it a key asset for Alphabet moving forward.
One of the main concerns raised by analysts is Alphabet’s high CapEx investments in AI. While these investments are important for the company’s long-term growth, they also come with risks. However, Alphabet has shown strong cost control measures in the past, which could help mitigate some of these risks.
Despite the challenges, many analysts believe that Alphabet is still a good buy at its current valuation. With a 25% upside potential, Alphabet’s shares are trading at a fair price, making them an attractive option for investors looking to capitalize on the company’s long-term growth prospects.
How this will affect me:
If you’re considering investing in Alphabet, now could be a good time to buy. Despite the mixed earnings report, Alphabet’s strong performance in key areas like YouTube ad revenue and search indicate that the company still has strong growth potential. With fair valuation and upside potential, Alphabet shares could be a good addition to your investment portfolio.
How this will affect the world:
Alphabet’s performance in the digital advertising space, particularly with YouTube, has a significant impact on the digital landscape. As one of the biggest players in the industry, Alphabet’s success helps shape the future of online advertising and technology. By investing in Alphabet, you’re not just investing in a company – you’re investing in the future of the digital world.
Conclusion:
Despite some challenges in the recent earnings report, Alphabet remains a strong buy for investors. With key strengths in areas like YouTube ad revenue and search, as well as a fair valuation and upside potential, Alphabet shares offer a compelling opportunity for those looking to capitalize on the company’s long-term growth prospects. Consider adding Alphabet to your investment portfolio for a chance to benefit from the company’s continued success in the digital advertising space.
