Go for GOOG: Why Alphabet Stock Is Still a Must-Buy in 2024

Stocks to buy

Alphabet (NASDAQ:GOOG,GOOGL) stock remains an interesting investment opportunity in 2024, despite facing headwinds and competition. The company’s strong fundamentals, diverse revenue streams, and investments in AI position Alphabet stock for continued growth in the years ahead. 

AI-powered growth persists despite regulatory scrutiny and market saturation. Their dominance in the advertising market, thanks to Google Search and YouTube, guarantees strong financial performance. With the release of Gemini 1.5 pro this month, Alphabet is not shying away from its competition in 2024.

AI-Powered Growth at Google Search and YouTube

Alphabet’s AI-powered growth at Google Search and YouTube is a significant factor in its continued success. AI and ML algorithms have revolutionized search and content recommendations, making both platforms more personalized and relevant for its users. 

This has led to increased user engagement, higher click-through rates, and ultimately, increased advertising revenue. AI powered features like Google Lens and YouTube’s automatic captioning have also enhanced user experiences.

Alphabet’s investments in AI have extended beyond search and recommendations. This has further solidified their position as a leader in the global digital advertising market. 

Significance of Their Highly Coveted Data

Alphabet’s vast amount of user data is another crucial factor that sets it apart from its competitors. The company collects data from various sources, including Google Search, YouTube, Gmail, Google Maps, and Android devices. 

This data provides valuable insights into user behavior, preferences, and trends, allowing Alphabet stock to tailor its products and services to meet user needs. Moreover, this data can help deliver highly targeted ads that are more relevant and engaging to their users. 

By holding over 90% of search engine market share, Alphabet can leverage this data and combine its AI capabilities to further enhance its targeting. This unique competitive advantage will be proven to work wonders in the long term.

Long Term Growth Potential of Their Gemini LLM

The long-term potential of Alphabet’s Gemini LLM is another reason the company remains a promising investment. Gemini, their next-generation LLM, is more powerful and versatile than its competitors. 

Not only does it offer multimodal capabilities, its speed, reasoning ability, and lack of messaging cap provide fertile ground for growth. Management is constantly announcing new additions to its AI model. 

The company recently announced the release of Gemini 1.5 Pro, offering the longest context model of any foundational model. According to one of Google’s President’s, the new AI model can make sense of 1,500 page documents and handle over 30,000 lines of code. 

The model is also catching up with ChatGPT’s processing of languages, as well as the integration of video search capabilities.

Alphabet Stock: Still Remains a Strong Buy in 2024

Alphabet stock has a growing number of bears, despite the company’s clear long term growth trajectory. Their AI-powered growth at Google Search and YouTube only provides a fraction of their true potential. 

The stock still remains relatively cheap, especially when considering their long term AI growth prospects. When it’s all said and done, Alphabet will be sitting on the throne of the AI revolution.

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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