Forecasting what a company’s stock price will be in a year – let alone more than half a decade – is a difficult and imprecise business.
And yet, it’s precisely this kind of long-term view that often makes the most successful investors.
So, we’re doing a series, looking at every Magnificent 7 stock and what it may be worth by 2030.
Today’s company in focus will be Alphabet, parent company to the gargantuan information giant Google.
“If there’s one stock among the Magnificent 7 that I find most reasonably valued, even after the recent run-up, it’s Alphabet,” says Invezz analyst Ritesh A.
Regardless of what valuation multiple you choose to value the company —P/E ratio, EV/Sales, EV/EBITDA or others—Alphabet’s stock trades at a lower multiple than most of the Magnificent 7 and appears to be a bargain in the tech sector overall.”
The GOOGL stock price now
This is impressive, as Alphabet certainly hasn’t become any cheaper in the recent past.
The Alphabet Inc share price has gone up by around $38 this year so far, or 27.2%, to sit at a stock price of $177.53 at the time of this article going to press.
A bit over $6.60 of this has come in during the past month.
In fact, Alphabet Inc’s hit a new record high of $179.56 on closing yesterday. And this is just one of many. Before that, Alphabet’s previous closing stock price was an all-time high of $179.54 on May 21st, less than a month ago.
The GOOGL stock price in 2030
There’s reason to suggest that Google hasn’t seen its glory days gone, and there’s still much upside to be had, despite other Magnificent 7 stocks receiving flashier headlines of late.
The Alphabet (GOOGL) stock price has gone up by over $123 in the past five years – a rise of 227%. A significant portion of that – almost half, at just over $53 – is from the past 12 months alone.
If we assume a similar trajectory in the next five years, GOOGL going up by the same amount would give it a stock price of between $304.80 and $412.98 by 2030.
And indeed, according to some, this isn’t unreasonable. Coin Price Forecast assumes Alphabet Inc will have reached a share price of around $432 by this time in the year 2030.
Alphabet’s stock valuation
But there’s an even more compelling reason to trust in Alphabet’s longer term staying power, says Ritesh. And that’s its valuation.
According to Ritesh, Alphabet’s diverse ecosystem – including Google Search, YouTube, Google Cloud, Google Services, and other products – gives the company price stability and peace of mind.
“That makes it a more comfortable hold for me than other members of the Magnificent 7,” says Ritesh.
He goes on to say that:
The reason I highlight Alphabet’s valuation is that, despite the stock doubling since March last year, its current valuation remains reasonable. The stock has shown strong performance on the charts since March this year, and indicators suggest that it can continue this rally in the short to medium term.”
The same cannot be said of all Magnificent 7 companies. Nvidia’s stock price, for example, is currently inflated by massive hype over the AI investing landscape, which makes it ripe for a correction later down the road.
Read our Nvidia 2030 stock price forecast
The GOOGL stock price to double 2030
This is good news for Google and Alphabet both in the medium to longer term.
In fact, it’s such good news, Ritesh A. expects the stock price to double by around 2030.
“Looking ahead 5 to 7 years down the line, I expect Alphabet’s stock to outperform most of the other members of the Magnificent 7. While there may be periods of retracement, I anticipate the stock will eventually double from its current levels by 2030, give or take 1 to 2 years,” he says.
Additionally, Alphabet has recently started paying dividends. Although the current annual yield is low, I believe it will gradually increase, becoming an important source of returns for investors in the coming years.
This would give GOOGL a stock price of around $359.12.
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