Alphabet and Tesla Performance in 2024
While Nvidia (NVDA) continues its rally, Tesla (TSLA) and Apple (AAPL) are facing challenges in 2024. Tesla, in particular, has experienced a sharp decline in market cap, making it the worst-performing S&P 500 Index stock this year. Alphabet (GOOG) has seen modest growth, underperforming the market return and holding the title of the worst performer among the Magnificent 7 stocks over the past decade.
Expert Opinions on Alphabet and Tesla
Renowned investor Ray Dalio considers Alphabet and Meta Platforms as “somewhat cheap,” contrasting the views of Warren Buffett, who has been selling stocks and holding onto cash. On the other hand, valuation expert Ashwath Damodaran sees Tesla as the most affordable stock among the Magnificent 7.
Wall Street’s View on Alphabet
Wall Street analysts have rated Alphabet stock as a “Strong Buy,” with a mean target price suggesting an 11.3% upside potential. Despite being rated lower than some of its peers, Alphabet’s valuation multiples are the most attractive among the Magnificent 7.
Challenges and Opportunities for Alphabet
Alphabet faces challenges in the digital advertisement space and generative AI race, with its Gemini chatbot receiving critical feedback. Despite competition from the likes of Amazon and Microsoft, Alphabet’s strong market position indicates potential for growth.
Is Alphabet Stock a Good Buy?
Despite facing regulatory hurdles, Alphabet’s growth projections make it an attractive investment opportunity. With recent underperformance potentially factored into current prices, Alphabet stock presents a compelling risk-reward scenario for investors.
