Global  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

Just How Valuable Is Google's AI?

Video Credit: The Street - Duration: 02:13s - Published < > Embed
Just How Valuable Is Google's AI?

Just How Valuable Is Google's AI?

Some argue that Alphabet is undervalued at current levels, but that doesn't even take into account the tech giant's artificial intelligence assets, which are extremely difficult to separate out and value.

Google shares have risen 16% year-to-date, compared to the S&P 500's 19.1% gain, and Google's forward one-year price-to-earnings multiple is 21.9, far lower than it once was.

But Google, searching for its next driver of meaningful growth, owns various artificial intelligence assets that make the company's operations more efficient, while indirectly driving revenue.

TheStreet's Tech Editor Nelson Wang said "It's kind of hard to overstate just how dominant google is in AI." He noted thtat "all of those services and products that it owns, it enhances the value of Google Search, of YouTube, of Android, so it's really very pervasive and comprehensive." TheStreet's Tech Columnist Tiernan Ray broke down why one can point to Google's AI capabilities as a way of arguing the stock is undervalued: "If you look at the stock, based on a market cap of $840 billion, based on projected revenue, is trading at 5 times forward revenue.

If you took out the cash that Google has, it drops down to 4.5 times.

[4.5 times revenue] is an extremely low multiple and what we're not factoring in is what is the value of all of the assets of all of the technology?

It's an intangible asset of some kind, but it must have some value because it produces things over time." Related: Alphabet Stock Might Be Really Cheap if You Factor in Its AI Leadership Alphabet is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.

Want to be alerted before Cramer buys or sells GOOGL?

Learn more now.

0
shares
ShareTweetSavePostSend
 

You Might Like


Tweets about this

priyak29

Priya Kanodia Greetings for the day! Please help us with your valuable insights for our research. Just fill this short survey a… https://t.co/2429qvm7KV 1 hour ago

TraderJust

@seeker RT @muglikar_: Saudi Arabia is listing its most valuable company ARAMCO on stock exchanges by selling just 2% stake in what's going to be b… 9 hours ago

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.