Iran rejects U.S. war proposal, says no talks before conditions met
Google (NASDAQ:GOOGL) stock is down almost 10% today, one of its worst days in years, after Apple (NASDAQ:AAPL) provided evidence that search engine usage is starting to decline.
It's been pretty obvious that AI has become a legitimate threat to the company's core business. But this is the first time we've gotten some tangible proof.
So just how worried are investors about this threat? I'd say they are very concerned. The stock isn't even getting a market multiple anymore.
It's trading at a 20%+ discount to the S&P 500. I don't have the exact figures, but I would bet this is the first time the stock has traded at a discount since the company went public over 20 years ago.
Google is the only Mag 7 stock with a forward PE below the market average. Is it a value trap? I think that it might be.
The forward estimates are for 0.4% EPS growth and 9.5% sales growth over the next 4 quarters. So nothing to get to excited about other than the valuation. But it looks like the stock may be cheap for a reason.
