Here are the big tech companies in an EV/EBIT comparison 
https://x.com/QualityInvest5/status/1905703403134812247
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Here are the giant companies in a Forward PE comparison 
https://x.com/carbonfinancex/status/1907439094759629001
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Here’s a quick Seven-point overview
https://x.com/finchat_io/status/1908180286514626764
The rest of the tweet thread
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Alphabet’s valuation was last this low at the end of 2022.
Since then, the stock has returned ~70%.
Even then, growth was around 10%, but rose slightly temporarily in 2014. Currently (possibly outdated this week), forecasts are above that.
Profitability has improved and is expected to improve.
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Below is a story about how the earnings season for big tech companies begins in an uncertain atmosphere with Trump’s second term.
Since his January inauguration, $3.8 trillion has evaporated from the market value of the Magnificent Seven. The main reason is tariffs, which threaten supply chains and global demand.
Compounding the issue is that Meta, Google, Apple, and Amazon are also facing difficulties due to antitrust laws.
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I summarized the Mag7 results for Q1. It went well for others, except for Tesla. The future outlook is still pending an update. Nvidia’s figures are from the consensus forecast.
The PEG ratio is based on the assumption that earnings growth will continue for the rest of the year at the same pace as in Q1. This will become clearer once the full-year forecasts have been updated. My expectation is that earnings growth will slow down for everyone for the rest of the year. So far, however, it looks good.
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Indeed, take a look at the EBIT growth.
If you ask a regular investor, they don’t grasp how strong their growth still is. For the past 4 years, they’ve responded that growth will end next quarter, even when you point out that relative to their growth, they aren’t even expensive. (excl. Tesla)
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For the full year 2025, revenue is anticipated to grow by over 10% for companies Alphabet, Meta, Microsoft, and NVidia.
Regarding operating profit, over 10% growth is also expected for the same companies. The exceptions are Meta, which would remain below 10% growth, and Amazon, whose operating profit growth would exceed 10%.
Earnings per share are expected to grow by over 10% for all except Meta and Tesla.
The companies’ share price performance has been negative since the beginning of the year, except for Meta and Microsoft, which are slightly in positive territory.
Alphabet’s valuation is clearly lower than others. The PEG ratio, which relates the P/E ratio to EPS growth rate, is below 1 for Alphabet and NVidia, which can be considered quite favorable.
In summary, it can be said that with the exception of Meta and Tesla, the Mag7 companies are still expected to achieve good results this year.
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Here’s a look at Amazon’s, Microsoft’s, and Alphabet’s cloud businesses
https://x.com/EconomyApp/status/1919436398496526400
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This probably also affects Google’s decline:
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The tweet below contains a comparison table listing the largest digital advertising companies in the United States.
Two of the “best business models” are built upon a comprehensive network and selling it to advertisers. The tweet below has more on the matter.
https://x.com/EricFlaningam/status/1921566422037053487
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Here is the free cash flow yield of large technology companies excluding stock-based compensation.
https://x.com/KoyfinCharts/status/1924881322809688267
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A big reason for Amazon’s non-existent free cash flow is the hundred billion CapEx that eats up the cash flow. Owners just have to believe that investments will yield well in the future and that CapEx can be reduced, at which point free cash flow will rise exponentially.
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Money has also been heavily invested in investments and revenue growth. However, something has also remained in the investor’s pocket in the form of share price development, if one has held it for a longer period.
Indeed, that combined annual growth rate is high for a company of that size:
Here are the giants compared in terms of free cash flow over a slightly longer timeframe.
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Are the valuations of the giants in good shape?
TTM = Trailing Twelve Months
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Alphabet still looks very affordable. Especially if you look at the PEG ratio, which relates P/E to EPS growth rate. Nvidia also performs well by this metric.
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Is that Tesla figure correct? The stock price is something like $340?
It has been calculated from that. EPS are consensus estimates
The latest consensus EPS has changed slightly, it is $1.91. Calculated with this, the P/E is 179.
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