Alphabet's AI Chops Caught Up, But The Stock Needs A Reset
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JR ResearchInvesting Group LeaderFollow5ShareSavePlay(11min)Comment(1)SummaryGoogle has reasserted itself firmly in the AI race, with the Gemini 3 model forming the foundation of a cohesive AI strategy.GOOGL's valuation has shot up to 29x forward earnings, in line with Magnificent Seven peers, as the market finally awakened to its AI chops.CapEx is expected to rise above $130B by FY2027, with margins projected to bottom in FY2026 before rebounding as AI monetization accelerates.Chasing further upside on Google might require it to show material market share gains on Nvidia, which could prove to be a tough nut to crack.Maintaining a Hold rating as a much-needed consolidation is well overdue, and significant buying upside looks limited from here. Sean Gallup/Getty Images News Google: A Truly Lovely Christmas To Savor This Year As Christmas approaches in less than two weeks time, I guess Google investors (GOOGL) (GOOG) could finally call it a Christmas to remember. Why? Well, itThis article was written byJR Research45.79K FollowersFollowJR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing. He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out. The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in the shares of GOOGL, META, NVDA, BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.