Discounted shares: Alphabet (Google)
Alphabet has seen its share price fall at a discount in the 2022 bear market, but future prospects are as bright as ever.
Alphabet's incredible cash flows and discounted share price provide a great opportunity for cumulative buybacks during the remainder of the year.
The company has performed phenomenally well, making big bets that have helped it dominate industries:
- As the search
- Mobile operating systems (Android)
- Internet videos (YouTube).
Short-format videos are the current trend led by TikTok, but YouTube is holding up well. Currently averaging more than 30 billion views per day, which is four times more than a year ago. Over the last decade, Alphabet has grown its revenue from $46 billion to around $270 billion. Alphabet generated $67 billion in free cash flow in 2021. According to Barron's, the company is expected to produce approximately $339 billion between 2023 and 2025.
What are discount shares?
A discounted share like Alphabet (Google) is a medium and long term buying opportunity, as the fourth most profitable company in the world, and with no sell recommendation from Wall Street's most recognized analysts, it can be summarized in one word, "opportunity".
