The current obsession with Artificial Intelligence (AI) is, frankly, a bit like everyone suddenly deciding they need to collect bottle caps. (It will pass. Though the bottle caps might linger. Like regrets.) Vast sums of money are being flung at the problem of making machines vaguely resemble sentience, and the stock market, predictably, is having a field day. Amidst this digital gold rush, one company stands out – not necessarily for being better, but for being… larger. And having a really good legal department.
This entity, known as Alphabet (a name that suggests a collection of interesting things, rather than a monolithic corporation), boasts a market capitalization of approximately $4 trillion. (Which is a lot of money. Enough to buy a small planet. Or a really nice yacht. Possibly both, if you’re careful with the depreciation.) The suggestion is that investing a mere $1,000 in this behemoth is a sensible course of action. Let us examine why. (Or, more accurately, why someone is suggesting you examine why.)
Alphabet is Everywhere (Which is Slightly Concerning)
If you are, for some reason, seeking exposure to the AI phenomenon – perhaps you believe robots will soon be writing poetry and demanding equal rights (a perfectly reasonable concern, actually) – you should probably take a closer look at Alphabet. It has been a dominant force in the internet age, mostly by indexing everything and then selling access to that information. Now, it appears to be aiming for dominance in the AI age as well. It’s involved in AI research (trying to teach computers to think, which is a bit like teaching a goldfish to play chess), chip development (making the little silicon brains that power these digital marvels), and cloud computing (renting out server space, which is essentially digital warehousing).
Furthermore, Alphabet’s Gemini large language models (LLMs) – essentially very sophisticated autocomplete programs – power an app used by a staggering 650 million people monthly. (That’s a lot of people. Enough to form a moderately sized country. Or a very enthusiastic book club.) Its platforms – Search, YouTube, Gmail, and others – are increasingly infused with AI-powered tools, ostensibly to “improve the user experience.” (Which, in corporate speak, usually means “extract more data.”) And, of course, AI is also being used to boost advertising outcomes. (Because everything, ultimately, is about advertising.)
The Valuation: Not Entirely Outrageous (For Now)
It might be prudent to act with a degree of urgency. (Or not. The universe is indifferent to your investment decisions.) Alphabet shares currently trade at a forward price-to-earnings ratio of 29.3. While not exactly a bargain, it’s not entirely unreasonable, especially considering the company consistently posts double-digit earnings growth. (Which is good. Unless, of course, those earnings are based on unsustainable practices. But let’s not dwell on that.) It’s a bit like buying a slightly used spaceship – expensive, yes, but potentially capable of interstellar travel. (Or, more realistically, just getting you to the grocery store.)
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2026-01-30 02:12