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GOOGLE Deep Mind Stock Investing to Profit from Machine Learning

Companies / Google Jul 02, 2019 - 03:52 PM GMT

By: Nadeem_Walayat

Companies

Where to invest to profit from the exponential machine intelligence mega-trend. I have ranked these stocks in in terms of risk vs reward and volatility. Do remember that when investing in the stock market that your capital is at risk. There are NO SURE BETS!

If you've not already done so then watch my following video from November 2016 which illustrates why everything will start to change exponentially by 2021.


Machine Intelligence has become a broad church that has fragmented or branched off into a myriad of sectors and the number keeps expanding every year. Many years ago I broke the machine intelligence mega-trend down into 9 key sectors that I have now further fragmented into 10 by basically adding Cyber Security as the following list illustrates, the 10 key machine mega-trend sectors to invest in.

Machine Intelligence Investing Mega-trend

For a primer on how to invest in AI Stocks then see my following recent video:

How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend

Top 10 AI Stocks

The stocks are ranked in order of priority. Also to further break down the list, I consider the first 5 stocks as PRIMARY i.e. the most important. The next 3 as of SECONDARY importance and finally 2 far more risky TERTIARY stocks.

The stocks analysis is being published in reverse order (10 to 1) as this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

PRIMARY AI STOCKS

1. ALPHABET (GOOGLE) - GOOGL

You probably better know ALPHABET as Google. Basically Google changed its name but not its stock ticker (GOOG) in recognition of the fact that Google has been expanding beyond it's primary business, its highly popular relevant search and ads, moving into operating systems (Android) and a full spectrum of AI related hardware tech such as Waymo, its self driving cars. However at it's core there is still the Google search algorithm that increasingly tweaks itself for every individual user. Whilst I don't expect this mega-corp 'safe' stock to perform like the much smaller cap stocks would, nevertheless it's likely to got the best chance of getting there first! And who gets there first WINS!

Google's AI projects include:

  • Google Auto ML vision - machine learning model builder for image recognition,
  • Google Assistant - voice assistant AI for Android devices,
    DeepMind – a division responsible for developing deep learning and artificial general intelligence (AGI) technology
  • TensorFlow - an open source framework comprising libraries and a platform used to run machine learning and deep learning on, including AI accelerators that many companies such as Ebay and Uber are already using. And likely many start ups, in fact many hundreds of thousands of individuals are using Tensor Flow right now including myself because it is FREE and so I will come back to explaining the importance of Tensor flow in a separate video.

Though bare in mind that 85% of googles revenues are still derived from SEARCH related advertising.

Alphabet (Google) Financials

Current Price $1173  
Market Cap $814bn  
Enterprise Value $707bn  
Total Cash $109bn  
Net Income $30.7bn  
P/E Ratio 26.85  
Forward P/E 21.46  
Dividend Yield Nill  
Sales Growth 23.4%  
Price to Sales Ratio (lower better) 5.37  
Price to Cash Flow Ratio (lower better) 15.32  
PEG Ratio (lower better) 1.43  
Debt to Equity (lower better) 2.26  
Stock Price 3 Year Change 56%  
Ratio to S&P 148%  

Google's fundamentals are rock solid. A huge cash mountain and strong annual earnings and sales growth. Only thing missing is a dividend yield.

(Charts courtesy of stockcharts.com)

Trend - Trend matches the S&P quite closely which it beats by nearly 50%.

Long-term Investing - Strong and stable long-term returns (148% of S&P). Basically Google's the AI sectors SAFE bell weather stock supported with regular share buyback's makes this a core holding for any stocks portfolio.

Conclusion - If your going to own just one AI stock then that stock has got to be GOOGLE! So far it's been an easy gravy train ride, and I don't see any reason why it shouldn't remain so for many more years as it has the best chance of keeping ahead of the competition.

Again this the whole of this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

Scheduled Analysis :

  • Machine Intelligence Investing - Life Extension Strategies and sub sector stocks analysis
  • Stock Market Trend Forecast Update
  • China Stock Market SSEC
  • Bitcoin update
  • UK Housing market series

Recent Analysis:

And ensure you are subscribed to my FREE Newsletter to get my public analysis in your email in box (only requirement is an email address).

Your analyst

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2019 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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