What Is The Intrinsic Value Of Alphabet (As Of Feb 2022) & What Is My Plan As An Investor/ Trader?

Alphabet, the parent company of Google, has always be one of my favourite and high conviction stocks. It was also one of my top performing stocks in 2021.

The company has excellent fundamentals, huge cash reserves, has been growing profits quarter after quarter, is absolute dominant in the search engine space (with number 1 being google search and number 2 being YouTube).

The share price has risen more than 100% from the March 2020 low of $1,110 to current day high of $2,689. Alphabet has also announced its stock 20-for-1 split in Q4 2021 earning report. The stock split will happen in July 2022.

Is Alphabet Overvalued or Undervalued?

So, after Alphabet’s share price has doubled in the last 2 years, is it still trading at a reasonable price? Or is it overvalued now? I would like to share the 2-min video extract by value investor Adam Khoo where he analysed and worked out the intrinsic value of Alphabet stock.

The intrinsic value of Alphabet (as of Feb 2022), accordingly to Adam Khoo, works out to be $3757. At Friday (25 Feb 2022) closing price of $2,689, Alphabet is still 28.4% undervalued.

What is my plan moving forward?

As the market continues to stay volatile, Alphabet’s price may fall below the current price. I intend to buy 5 share of Alphabet, progressively over the next few months, whenever there is a huge dip in the market.

These 5 shares will be part of my long term investment as I believe Alphabet still has plenty of upside potential. When July 2022 comes, these 5 shares will become 100 shares due to the stock split. By then, Alphabet’s price may rise due to the stock split as more retail investors come in to buy the shares at a cheaper price (per unit).

I will then sell covered call on my 100 shares of Alphabet to earn a sideline income and to further reduce my average price on Alphabet. If the shares and options contracts do not get called away, it will be having the best of both worlds of both long-term investing and earning a sideline come through options trading.

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Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts behind executing these trades:

Excited to start your trading journey or perhaps try out with a paper trading account to build your confidence in trading? Check out this step-by-step to help you get started:
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If the bear market in 2022 is making feel depressed as your stocks come tumbling down, read this article to find out how you can use options trading to help you claw back some of your losses as you await market recovery:
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I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
My Secret Weapons For Options Trading: I Watch These YouTube Financial Channels Every Day

I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sensing of the percentage yield I get out of my gains:
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021

This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
I Cut $135,715 Worth Of Losses In The Last 1.5 Months

Want to learn more about Technical Analysis (TA) but find it difficult to grasp the concepts? This article brings you TA at a glance, and helps you understand key terminologies, indicators, and techniques used in TA to equip you with the knowledge that can empower you in your investing/ trading journey.
The Newbie Guide To Technical Analysis (TA)

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