In 2024, Google (NASDAQ: GOOG, GOOGL) performed strongly, with its stock price rising by 37%. However, compared to Meta, which saw a stock price increase of 69%, Google's performance appears somewhat lacking. The main reasons for Google's underperformance include competition from generative AI tools like ChatGPT in the search domain, delays in AI development, and potential threats from the U.S. Department of Justice regarding the divestiture of Chrome and Android. Nevertheless, Google maintains a solid position in the global search market and is adapting to these challenges through innovation.

(Source: Google Finance)

To address competition from AI chatbots, Google launched AI Overviews in May 2025, a feature that provides direct answers in the search bar. While this new functionality raised concerns about potentially siphoning off search traffic, actual data shows that Google's search revenue grew by 12% year-over-year, indicating the robustness of its advertising business. Additionally, Google's cloud business performed impressively, with an EBITDA of approximately $9.4 billion in 2024, and is expected to grow by 60% to $15 billion in 2025.

Google has also made breakthroughs in quantum computing, with its quantum chip, Willow, demonstrating the significant potential of combining AI and quantum computing. Although Google's AI development started later, its updated Gemini 2.0 has shown comparable performance to competitors like ChatGPT. The integration of quantum computing and AI is expected to help Google regain its leadership position in the tech sector.

Various valuation methods indicate that Google is undervalued. Based on the discounted cash flow (DCF) model, Google's fair value is estimated at $222, considering a 17% annual growth rate in free cash flow. Using the sum-of-the-parts (SOTP) valuation method, the target price for 2025 is $259, suggesting a 35% upside potential from the current stock price. Google's current price-to-earnings (P/E) ratio is 21.5, below its five-year average of 27.3, highlighting its undervalued potential.

Despite the risk of a possible divestiture of Chrome by the Department of Justice, analysts believe this likelihood is low, especially considering Microsoft's similar cases in the 1990s and 2000s. Google's advertising revenue primarily comes from its search engine, and competition from other search engines and AI tools could threaten its market share. However, Google is responding to these challenges through AI innovation and ecosystem integration. Overall, Google's performance in 2024 has been solid, with strong growth potential for the future, particularly in the fields of AI and cloud computing. Based on these factors, analysts recommend making Google a key holding in investment portfolios for 2025.

What is Dollar-Cost Averaging in Stocks?

Dollar-cost averaging, also known as monthly stock investment, refers to an investment strategy where a fixed amount is used to purchase specific stocks at regular intervals. This approach allows investors to buy shares without needing to purchase a whole unit each time, instead buying a proportionate number of shares based on their set monthly investment amount.

For example, consider Mr. Chen, who wishes to invest in the Google in stages. Using the dollar-cost averaging feature, Mr. Chen invests USD 1,000 each month, which uSMART uses to purchase shares at market price and deposits them into Mr. Chen's account. This way, Mr. Chen effectively buys around 5 shares of Google each week, achieving a low-threshold stock investment.

Advantages of Monthly Investment via uSMART

Choosing the right investment platform is crucial for dollar-cost averaging in stocks. Investing through the uSMART platform offers several significant advantages:

1. Commission-Free Trading

uSMART provides commission-free trading services, meaning investors do not have to pay commission fees for each stock transaction. This is particularly important for investors making regular investments, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, you can allocate more funds to actual investments.

2. No Platform Fees

Besides commission-free trades, uSMART does not charge platform usage fees. This allows investors to enjoy a lower cost structure in long-term investments, further enhancing investment returns. This is especially beneficial for frequent small investments, as the absence of platform fees effectively reduces overall investment costs.

3. No Custody Fees

uSMART also offers the advantage of no custody fees, meaning you do not need to worry about management fees for account funds. This exemption provides investors with greater flexibility to manage liquidity and investment strategies.

4. Convenient Investment Experience

The uSMART platform features a user-friendly interface, allowing investors to easily set up a monthly investment plan and automate their investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly based on their financial situation and investment goals.

5. Support for Fractional Shares

uSMART allows investors to make fractional share investments, meaning you can invest according to your set monthly amount even if you do not have enough funds to buy a whole share, further lowering the investment threshold and enabling flexible allocation.

How to Purchase Monthly Stocks on uSMART

Step 1: Log into the uSMART HK app and click "Trading" at the bottom right of the page.

Step 2: Click on "Dollar-Cost Averaging" in the second column of the page and select "All Dollar-Cost Averaging Stocks."

Step 3: Choose your desired dollar-cost averaging stock, select the investment amount, deduction method, and deduction date, then create your investment plan.

Once confirmed, the investment plan will take effect in real time.

(SOURCE: uSMART HK)