Alphabet, part of the 'Magnificent Seven' tech giants, has seen its valuation drop significantly compared to its peers. While it boasts a diversified business, it remains heavily reliant on Google Search. Interestingly, growing competition might benefit Alphabet over time.

The 'Magnificent Seven' includes Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, and Tesla. These companies have frequently outpaced the S&P 500, driving substantial market gains. However, in 2025, some like Apple and Alphabet are underperforming.

Alphabet's current valuation presents it as more affordable than the S&P 500 by crucial metrics, indicating potential investment opportunities. The stock's recent dip places it in a favorable position for investors looking for value buys.