--- title: "Ross Gerber Says Alphabet Stock Is 'Inexpensive': Analyst Cites 4 Factors Why Google-Parent Is Undervalued Compared To Mega Cap Peers" type: "News" locale: "en" url: "https://longbridge.com/en/news/255543193.md" description: "Investment advisor Ross Gerber believes Alphabet Inc. is undervalued compared to tech giants like Microsoft and Amazon, citing its strong AI and cloud investments. Gerber highlights Alphabet's $2.58 trillion market cap and recent $9 billion investment in Virginia for data centers. With a low forward P/E ratio of 22.12, Alphabet's stock appears inexpensive relative to peers. Despite a 12.4% year-to-date increase in Class A shares, analysts suggest a potential downside of 6.46% based on a consensus price target of $211.03." datetime: "2025-09-02T04:11:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/255543193.md) - [en](https://longbridge.com/en/news/255543193.md) - [zh-HK](https://longbridge.com/zh-HK/news/255543193.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/255543193.md) | [繁體中文](https://longbridge.com/zh-HK/news/255543193.md) # Ross Gerber Says Alphabet Stock Is 'Inexpensive': Analyst Cites 4 Factors Why Google-Parent Is Undervalued Compared To Mega Cap Peers Investment advisor **Ross Gerber** said **Alphabet Inc.** GOOG GOOGL is undervalued compared to other tech giants, as **Google** ramps up multi-billion-dollar AI and cloud investments to compete with companies like **Microsoft Corporation** MSFT and **Amazon.com, Inc.** AMZN. ## **Ross Gerber Calls Google ‘Inexpensive' Compared To AI Peers** On Monday, Gerber, CEO of **Gerber Kawasaki Wealth and Investment Management**, highlighted Alphabet's strong position in AI and technology while arguing its stock remains attractively priced. "YouTube, Waymo and Gemini. Along with the search cash cow. A bit of quantum and all the recent knowledge of the internet. Google seems very inexpensive relative to AI mega cap peers," Gerber wrote on **X**, formerly **Twitter**. Alphabet currently holds a $2.58 trillion market cap, making it the world's fourth most valuable company, behind **Nvidia Corporation** NVDA, Microsoft and **Apple Inc.** AAPL. ## **Google Ramps Up AI And Cloud Spending** Alphabet has unveiled ambitious plans to strengthen its AI and cloud infrastructure. Last month, the company announced a $9 billion investment in Virginia to build and expand data centers across Chesterfield, Loudoun and Prince William counties. Separately, in July, Google committed $25 billion to data center and AI infrastructure across the **PJM Interconnection** grid, reinforcing its position in the AI arms race. The company also closed a $2.4 billion deal to license technology from AI startup **Windsurf**, hiring its CEO and key engineers as part of its aggressive talent acquisition strategy. ## **Strategic Deals With Meta And Oracle** Earlier, it was also reported that Meta struck a six-year, $10 billion deal to run its **Llama** AI models and generative AI tools on **Google Cloud**. **Oracle Corp** ORCL also announced a collaboration to integrate Google's **Gemini** AI models into its **Oracle Cloud** Infrastructure. These partnerships strengthen Google Cloud's position as it seeks to gain ground on **Amazon Web Services** and **Microsoft Azure**. In the second quarter, Alphabet reported $96.43 billion in revenue, beating expectations, with Google Cloud revenue up 31% year over year to $13.62 billion. ## **Alphabet's Competitive Edge** Google's forward P/E ratios of 22.12 (GOOGL) and 22.17 (GOOG) are relatively low compared to its major tech peers, suggesting potential undervaluation given its growth in AI and cloud. In contrast, **Tesla Inc.'s** TSLA forward P/E of 178.57 reflects extremely high growth expectations priced into the stock. Alphabet has a consensus price target of $211.03, based on ratings from 34 analysts. The three latest analyst ratings came from Needham, Loop Capital and Wells Fargo, setting an average price target of $199, implying a potential downside of approximately 6.46%. **Price Action:** Alphabet's Class A shares are up 12.4% year to date, while Class C shares have gained 12.01%, according to Benzinga Pro. During the same period, Meta has risen 23.27%, Nvidia is up 25.88%, Microsoft has gained 21.05%, Amazon has increased 3.99%, while Apple and Tesla have declined by 4.80% and 11.97%, respectively. According to **Benzinga’s Edge Stock Rankings**, GOOGL continues to show a solid upward trajectory over short, medium and long-term timeframes. More performance details are available here. _Photo Courtesy: Shutterstock/JHVEPhoto_ - **Apple May See Fewer Searches In Safari, But Google CEO Sundar Pichai Insists AI Is Fueling Overall Query Growth: ‘Far From A Zero-Sum Game'** ### Related Stocks - [Alphabet Inc. (GOOGL.US)](https://longbridge.com/en/quote/GOOGL.US.md) - [Alphabet Inc. 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