Alphabet Inc. (Nasdaq:GOOG), the parent company of Google, joined their fellow tech giants in massive layoffs. In preparation for massive growth, the company overhired and now was forced to roll back. They cut 12,000 employees, which is 6% of the workforce. Indeed, it is their largest job cut ever and came on the back of missed earnings. Intriguingly, their share price lost 39% of its value last year, while their revenues grew and now they have cut their cost structure.
Comps: Apple Inc. (Nasdaq:AAPL), Microsoft Corporation (Nasdaq:MSFT)
In comparison to Apple and Microsoft, Alphabet has a better share price in relation to earnings per share and debt in relation to equity. Additionally, they generated higher revenues in the past year than Microsoft. Overall, Alphabet, along with other large tech stocks were at unusually low prices despite the growth over the past 2 years, making for a potential growth opportunity in an otherwise value pick.