Opinions John O'Connell, CFA
Alphabet IncGOOGPAST TOP PICKJun 09, 2015
John O'Connell, CFAStock price when the opinion was issued
As of Sep 18, 2026. Market Open.
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If you look at the 3 biggest hyperscalers today, the best position is probably in GOOG. Doing lots of internal development and investment in its AI models. Gemini is lagging Anthropic and OpenAI, but it's a close third. GOOG is really at the forefront of innovation, especially compared to the other 2 hyperscalers.
She owns no hyperscalers right now.
This one, but don't put all your eggs in the one basket. It just has so many horses in the race. About 75% of revenue comes from advertising. Cloud business generates a whole lot of money. Very strong with Gemini, and now agentic AI has come out. Robust short-term liquidity. Current and quick ratios are well above 1. Low debt-to-equity. ROE of 38.1%. PE is ~17x.
The #1 holding in his fund. His 12-month price target is $428. Buy some here, more around support at $320. Shouldn't go under $300.
Kim BoltonRevenue's grown 26% on average, per year, for the last decade. That's quite transformative. Subscriptions plus cloud are growing quickly. Valuation's quite attractive compared to historical comparisons. Attractive entry level at 16.7x forward PE. Small yield of 0.26%.
(Analysts’ price target is $428.18)
Darren SissonsHe bought more. Their big knock is their massive spend, but it's now more disciplined and targeted. Is a long-term hold. A strong, diversified play.
Kevin SimpsonWell run, unique opportunities. Gushes cash, can use it to fund the AI infrastructure buildout. He absolutely loves it, but don't buy today. Wait for a bit of a pullback.
Chris Blumas
That was an eye-opener. The Mag 7 has peaked, and it could be a multi-year peak due to the negative free cash flow. GOOG is one of the winners in AI. Once the PE declines or AI spending slows, the stock could react better. The street would be very disappointed if only the core businesses of the Mag 7 were generating free cash flow growth and AI was not. It's tough to look through AI spend and invest the Mag 7 which remain great companies, but now face the biggest risk in years.
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Premium contentIn the last quarter, the company reported 9.11 USD per share, beating the 2.88 USD estimate by 216.66%. Revenue for the same period reached 119.80 B USD, despite the estimate of 117.06 B USD. For the next quarter, analysts expect 3.02 USD in earnings per share and 124.53 B USD in revenue. Social media mentions are up 405% in the past 24h.
He trimmed a little early this year, but likes it. Their relationship with the customer is strong across its platform. Secondly, growth is remarkable. Also, the valuation is reasonable. Their AI model is not the best, but it's competitive. Can you keep your eyeballs on a Google product? Yes. Gemini is integrated in their search, so that removes the threat to their search.
Julien Nono-Womdim
(A Top Pick June 30/14. Down 7.27%.) He is disappointed. It has more money in the bank this year than last year. Profits are up and it is trading at a reasonable valuation. People are concerned about their strategies and how other companies are earning more advertising revenues in native apps. They are also disappointed that the company is not using its YouTube app fast or aggressively enough compared to Facebook (FB-Q). Profits are still growing at about 20% and trading at 17X earnings. Has dominant market share in its businesses. Also, dealing with the European antitrust investigation, which he thinks they will likely move through, but will probably cost them some money. Also, feel investors are concerned about the company’s ability to grow rapidly in the Chinese market, where most of their applications are blocked by Chinese authorities.