Prediction: 1 stock with more than an alphabet for 10 years from now on

alphabet (Goog -1.44%)) (google -1.44%))Google’s parent company is considered a healthy long -term investment. Tech Giant’s shares have increased more than 480% as they have expanded their advertising and cloud businesses over the past decade.

From 2014 to 2024, sales of alphabets increased to annual annual growth (CAGR) as EPS increased to 23%of CAGR. From 2024 to 2027, analysts expect the company’s sales and EPS to increase 11% and 13%, respectively. However, the business of the alphabet is mature as it faces existential challenges.

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The new generating artificial intelligence (AI) platform, such as Openai’s CHATGPT, is changing how people search and challenge key search engines. Tiktok of bytedance, Meta platform‘ (Meta -0.22%)) Reel and other short video platforms are removed from YouTube. Independent advertising technology platform Trade desk Alphabet’s advertisers are taking away advertisers, and Google has not yet established a meaningful being in social media, e -commerce or hybrid “social shopping” markets. It also ranked third in the cloud infrastructure market. Amazon Web service (AWS) and Microsoft azure.

The alphabet is also faced with the strong pressure of the monopoly regulator. The US Department of Justice (DOJ) wants Google to sell Chrome, the world’s most popular web browser. This is because it collects many user data that strengthens the control of the search and target advertising market. DOJ is also trying to limit how Google promotes the service in Android.

Such sales and restrictions can deteriorate the company’s slowdown and erect defense against Microsoft and Amazon in the growing cloud and AI markets. If the alphabet does not respond to these challenges, it can turn into a slow -growing technology company. IBM For the next 10 years. If this happens, the $ 1.35 trillion meta platforms will be able to unmatch the market cap of the alphabet in the next 10 years.

Meta has less long -term tasks than alphabets.

META, with Facebook, Instagram, Messenger and Whatsapp, is the world’s largest social networking company. At the end of 2024, we provided services to 30.3 billion active users in the world’s app family, which has increased by 5% from 40% of the total population and 3.31 billion daily active users at the end of 2023.

From 2014 to 2024, Meta’s sales and EPS increased to 29%and 36%, respectively. It dominated the social media market, changed the way people interacted with each other, and grew faster than the alphabet to create effective targeting advertisements for all accumulated data. The 2012 Instagram and WhatsApp acquisition in 2014 expanded the ecosystem and fixed the user.

From 2024 to 2027, analysts expect meta sales and EPS to grow to 13%and 11%, respectively. This growth rate can be compared with the alphabet, but meta faces short -term challenges. It corresponds to tiktok and reel, deploys more advertisements using AI, and opens a store on Instagram, and exists in the social commercial market. In addition, we have established the advantage of initial movers in the early virtual and augmented reality markets.

Why the meta can be more valuable than the alphabet

Meta and alphabet are 21 and 18 times the transactions of this year, respectively. Let’s assume that both companies coincide with the analyst’s estimates and continue to increase the EPS with 10%CAGR from 2027 to 2035 and trade with 20 times forward imports. If this happens, how much meta and alphabet are worth by early 2035.

Data Source: MarketsCreener.

However, these estimates assume that the growth of the meta will not accelerate significantly, and the alphabet will not be interrupted in the AI, the cloud and advertising markets. Alphabets coincide with Wall Street’s estimates by 2027, but they will grow EPS in 5%CAGR over the next eight years and are traded at 15 times by early 2025. The stock price rises from 65%to $ 257, which can increase the market upper limit to $ 3.22 trillion.

However, if META consists of the analyst’s expectations by 2027, the EPS can increase the EPS to a faster CAGR by 15%to 2035 and trade with advanced imports of 25 times. The stock price rises almost 380% per share, $ 2,514, which can lead the market limit to $ 6.47 trillion.

Now are all guesses

Many things can happen over the next 10 years, so we don’t know if the meta is actually worth more than the alphabet by 2035. However, Meta has more iron in fire than alphabet, and has been dissatisfied over the years because he did not conquer the social media, e -commerce, short forms, cloud infrastructure and AI markets by utilizing the dominance of the online search market.

Currently, META has clear shots when overtaking alphabets for the next 10 years. But calling the alphabet “the next IBM” and claiming that the day of growth is over can be given early.