Trouble For Alphabet - And Why Competition Will Erode Growth & GOOG Stock

The economy is standing in the way of value investments & GOOG stock, along with competition in search for Alphabet

Alphabet - GOOG Stock - 4-Hour Chart

Last week Alphabet, parent company to Google, released its financials. News of increasing revenues and earnings propelled by AI success shot GOOG stock higher. As a value investor, what should someone expect with the future of Alphabet and GOOG stock?

The first question is breaking down Alphabet financials and asking how much value there is after the big move higher in GOOG stock? Next, given the future outlook for the US economy, with the perceived value from an investment in GOOG stock, what is next for US stocks?

There is some value left in GOOG stock. But, this does not mean that the economy is going to cooperate with the hopes of investors. No stock lives on an island and Alphabet gets zero exceptions. There is too much inflation and the Federal Reserve is going to have to keep interest rates higher for even longer. This will directly affect revenue and earnings for Alphabet, and by extension GOOG stock.

Notwithstanding AI success, there is the fact that competition is eating away at its search hegemony. This may be one of the most significant aspects to a value investor in GOOG stock.