Affluent Individuals Flocking to Purchase Shares in Unexpected Quantum Computing Company (Notably, Not IonQ or D-Wave Systems)
In the dynamic world of technology, Alphabet, the parent company of Google, finds itself at a crossroads, with both challenges and opportunities looming on the horizon.
Recent developments have seen a surge in interest from high-profile hedge fund managers, such as Isaac "Izzy" Englander's Millennium Management and David Tepper's Appaloosa Holdings, who bought over 2 million and 128,000 additional Alphabet shares respectively in Q1 2023 and Q1 2025, possibly viewing the 18% fall in Alphabet's share price during the first quarter of 2023 as a buying opportunity. Ken Griffin's Citadel Advisors also boosted its position in Alphabet by nearly 56% during the same period.
However, Alphabet's journey is not without its hurdles. The company has lost two major antitrust lawsuits over the last year, and the risks of potential antitrust sanctions should not be overlooked.
On the brighter side, Alphabet's Google Search and YouTube continue to dominate their respective markets, showing no signs of waning. The Google Cloud unit, the fastest-growing of the major cloud service providers, is poised to benefit from the rising adoption of AI, which should drive even greater demand for cloud services.
In the realm of quantum computing, Google's subsidiary, Google Quantum AI, has made significant strides. In 2019, the company claimed to have achieved quantum supremacy, and in 2023, it demonstrated a logical qubit prototype for quantum error correction, achieving two of the six major milestones on its quantum computing roadmap.
Meanwhile, the landscape of search engines could undergo a significant shift. Rumours abound of Apple possibly acquiring or partnering with Perplexity, which could potentially disrupt Google Search. If Apple were to replace Google Search as its default search engine on Safari, it could take a significant hit on Google Search revenue.
The price-to-earnings-to-growth (PEG) ratio of Alphabet stands at 1.38, with shares trading at 19.3 times forward earnings. As the autonomous ride-hailing momentum accelerates, Alphabet's subsidiary Waymo could have a significant opportunity in this sector.
In the quantum computing race, IonQ shares have soared nearly 6x over the last 12 months, while D-Wave Quantum stock has seen a rise of roughly 1,400% during the same period. As Alphabet continues to push boundaries in quantum computing, it remains to be seen how these developments will shape the future of technology.
In conclusion, while Alphabet faces challenges, particularly in the antitrust arena, its progress in quantum computing and its dominant position in search and video streaming, coupled with the potential opportunities in autonomous ride-hailing and cloud services, make it a company worth watching in the coming years.
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