Alphabet is 40% lower this year. The vast majority of analysts covering the stock – 92% give it a buy rating, and it has an average upside of around 47%, according to FactSet.
The stock’s price-to-earnings ratio is around 16 – a similar level to the S&P 500.
“They’ve got a CFO who originally was from Morgan Stanley on Wall Street, they’ve got discipline, they know how to speak to shareholders,” Brown said.
He added that Meta CEO Mark Zuckerberg should “emulate the way that Alphabet has been able to ring fence some of those big moonshot bets they’re making.”
This includes Waymo (formerly Alphabet’s self-driving car project) and Sandbox (its spun-off quantum technology group) and “all kinds of other things that they’re lighting dollars on fire to create,” Brown said.
Ritholtz Wealth Management manages over $2 billion for high-net-worth investors, corporate retirement plans, and foundations.
