Jim Cramer Recommends Buying Alphabet and Amazon Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Cloud Revenue Growth: Alphabet's cloud computing revenue has accelerated for three consecutive quarters, indicating strong performance in digital advertising and cloud services, which is expected to further solidify its market position, especially driven by advancements in artificial intelligence.
- AI-Driven Retail Efficiency: Amazon is leveraging AI to enhance retail operations, with cloud revenue growth reaching 24% in Q4, marking the highest level in 13 quarters, showcasing a compelling value proposition in its low-margin retail business.
- Chip Commercialization: Alphabet's TPUs are now being monetized externally, with Meta and Anthropic signing multibillion-dollar rental agreements, which are expected to generate significant revenue streams and enhance its competitiveness in the cloud services market.
- Long-Term Growth Expectations: Wall Street anticipates annual earnings growth of 11% for Alphabet and 15% for Amazon, and despite high current valuations, analysts have consistently underestimated both companies' profitability, making the current prices attractive buying opportunities for long-term investors.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 300.880
Low
305.00
Averages
374.25
High
400.00
Current: 300.880
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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