marketwatch.com - Alphabets stock has never been this cheap relative to metas how to play that

"Alphabet shares are trading at nearly their largest-ever discount to the S&P-500 when looking at a forward price-to-earnings multiple, and the actual record discount was set just a few weeks ago".

I haven't "backed up the bus" (I already own a decent amount) - but I am selling some of my BRK and would consider even moving some SPY (or RSP) into Google. I remember when MSFT was in the trash-can 10 years ago and it turned out to be one of my best investment decisions - this is starting to smell a bit similar.

It seems very likely that TTM-EPS will come in close to $9.00 per share in the next 12 months; even a 20x multiple on that (which I would put in the bear case) gets you to $180.00. A worst case 15x gets you to $135 / share.

Reminder: Its traded above 30x in the past - if you want an upside number.

Note: I am using 12 months as a short term proxy; the EPS trend isn't going to slow, they will probably do $10.50 / share in earnings 24 months from now which gets you to $200 pretty quickly - roughly 25% above current levels (with almost no downside - relative to the SPY or BRK)

tecmo
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