's (NASDAQ: GOOGL) (NASDAQ: GOOG) stock has fallen 7% over the last month, fueled by a general pullback from investors in tech and a bearish view on the company's second quarter of 2024 earnings. However, the recent dip has only made its stock more attractive, with its price-to-earnings (P/E) ratio now sitting at 24.

The company's massive long-term potential makes the slight sell-off seem like an overreaction. Alphabet's core business, advertising, remains a highly lucrative venture. Meanwhile, heavy investment in artificial intelligence (AI) over the last year appears to be paying off, represented by exceptional growth from Google Cloud.

Alphabet is on a promising growth trajectory, and its stock is trading at a bargain. The company hit $61 billion in free cash flow this year, signifying vast financial resources to continue expanding its business.

Continue reading

Source Fool.com