Just two months into the year, the US stock market has struggled to find its footing. There is no shortage of uncertainties shaping the market that have hindered a host of companies. Yet, there is no denying that Alphabet (GOOGL) may be among the most undervalued stocks of 2025.
BlackRock is among the many experts who predict many mega-cap stocks to drive the US equity this year. Moreover, analysts project 18% earnings growth for the tech sector compared to 11% within broader indexes. The question is, where does the Google parent company fit into these and a thriving AI sector?
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Alphabet May Well Be The Most Undervalued Stock of 2025, and Here’s Why
The last two years have seen both AI and tech drive increased investment into the US stock market. There is no shortage of companies looking to gain an edge, as firms like Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT) battle it out. Yet, there may be one company getting overlooked by the broader market.
Among those entities with so much prominence, Alphabet (GOOGL) may have emerged as the most undervalued stock in 2025 just two months into the year. Indeed, a new report from Insider Monkey notes its wide moat, network effect, and cost advantage can drive it this year.
Also Read: Alphabet (GOOGL) Stock Is Clearest Entry Point to $1T Market
“Alphabet Inc. (NASDAQ: GOOGL): Q2 2024 revenues and EPH beat expectations, with total revenues growing 14%,” Qualivina Investment Partners said in a recent investor letter. “Search ad revenues are growing 14%, YouTube ads growing 13%, and Google Cloud revenues growing 29%,” they added.
Currently, the company has a median price target of $220, according to CNN. That represents a 30% upside from its current position, with a $184 low-end projection signaling another 8% increase if the worst-case scenario came to pass. Additionally, it has a $250 high-end projection, noting a 47% upside for the stock this year.
