Markets have been sliding downhill over the past few weeks, and companies both big and small have been snared in an ongoing web of losses. Even perennial winners such as Alphabet (NASDAQ:GOOG) have not been spared from these declines.
Indeed, GOOG is down in the mid-teens year-to-date, for reasons both macro and specific.
Beyond the overall worries caused by the escalating tariff brouhaha, Google has been forced to deal with a number of regulatory concerns both at home and abroad, including a preliminary EU finding that the company has been unfairly favoring its own products.
In addition, the DeepSeek surprise in late January raised questions regarding the benefits of huge AI capex spending, pushing down valuations for the hyperscalers.
One investor known by the pseudonym Juxtaposed Ideas believes the dip is providing investors with a limited window to buy in.
“GOOG’s recent selloff, driven by the bursting AI bubble and regulatory concerns, presents a rare buying opportunity with high double digits upside potential,” asserts the 5-star investor.
Juxtaposed notes that Google is rolling in the money, with free cash flow generation of $72.74 billion in FY 2024, which represents growth of 4.7% year-over-year. The investor also points out that Google Services has continued to deliver very strong operating margins of 60.7%, which is an indication that the company is able to “increasingly monetize its existing offerings.”
The self-driving revolution is also beckoning investors with the potential for lucrative gains, explains Juxtaposed.
“While likely to be minimal in its early days, we believe that GOOG’s autonomous segment is likely to be a long-term growth driver,” adds the investor.
The dropping share price has made GOOG much more alluring for Juxtaposed, who cites the company’s Forward Price-to-Earnings valuation of 19.25x – down from 1-year, 5-year, and 10-year averages of 21.30x, 25.42x, and 23.80x, respectively. The investor also adds that this makes GOOG cheaper than most of its Magnificent 7 peers.
“As a result of its reasonable valuations, the bullish support at the recent correction, and the high double digits upside potential from current levels, we are upgrading the GOOG stock to a Strong Buy,” concludes Juxtaposed Ideas. (To watch Juxtaposed Ideas’ track record, click here)
The recent dip has not scared off Wall Street, either. With 11 Buy and 2 Hold ratings, GOOG enjoys a Strong Buy consensus rating. Its 12-month average price target of $216.82 has an upside of ~36%. (See GOOG stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.