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Opinions The Monthly Gems by Allan Tong
Alphabet IncGOOGTOP PICKJul 03, 2023
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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A Hold for him today instead of a Buy, just on valuation (~30x PE). Very robust growth outlook. To add, wait for a bit of a pullback -- the potential for valuation upside gives you less risk, and you can't expect multiple expansion from current price point.
Chris BlumasFantastic year. Recently pulled a bit back from peak. Gemini has been exceptional. Ancillary assets deserve attention. Great long-term hold.
John ZechnerAI monetization is happening, and AI Mode has been a game changer. Stronger cloud growth (revenue grew 63% YOY last quarter, tremendous), broader monetization across platforms. Search and advertising remain strong, lots of cashflow. Also a great ecosystem.
Good growth, but relatively decent valuation. Yield is 0.25%.
Stan WongStill one of the highest-quality businesses in the world. Wide range of opportunities despite the runup. Cloud has been doing extremely well. Reasonable valuation. 9/10 on fundamentals. Regulatory scrutiny a potential risk. Massive user base, proprietary data.
(Analysts’ price target is $430.00)
Brianne GardnerFirst quarter since Covid it didn't buy back stock. Raised capex by $5B. Gemini is outstanding, leading it to win at Search as well as to concrete monetization. Only trading at 22x PE for 2028 and 17% growth. Stock still works, more to go.
Greg NewmanA year ago, consensus was that Search was going to die. Seems ridiculous now. Gemini is overtaking ChatGPT. Data centre business is growing faster than before. Still not that expensive. He hasn't sold any shares yet, but may take some off the table from the long-term holding and put toward one of the Mag 7 laggards.
Martin Cobb, ASIPWill lose market share on Search. But it's a story of a much bigger pie, so their eventual benefit will be much greater. Pulled AI into the Search model, and Gemini is in a leadership position. Multiple in the high 20s still undemanding. Spits out lots of cash. Lots of irons in the fire.
Gordon Reid
Given its networks, will be a direct beneficiary from AI. Expensive, and has to grow into its multiple. So many divisions at play. Yield is 0.22%.
(Analysts’ price target is $422.26)
Darren SissonsPopped so much on earnings because it's the clear winner on AI. Eclipsed ChatGPT in the ability to advertise on AI and to integrate everything.
Barry Schwartz
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Premium contentIn the last quarter, the company reported 5.11 USD per share, beating the 2.68 USD estimate by 90.44%. Revenue for the same period reached 109.90 B USD, despite the estimate of 106.96 B USD. For the next quarter, analysts expect 2.83 USD in earnings per share and 114.90 B USD in revenue. Social media mentions are up 580% in the past 24h.
Doing great. Worries about Search becoming obsolete were baseless, though its share of searching will fall. However, the pie will expand and so total revenue will grow. Gemini has a leadership position in AI.
Plus there's YouTube -- about 23% global streaming share and caters to shorter attention spans. Waymo also adds to this very powerful compounder.
Gordon Reid
DeepMind's many activities bode well for Alphabet's future. So, what about its current numbers? Alphabet trades at a low multiple, 27.5x, compared to its peers: Meta at 37x, Apple 32.73x and Amazon 303x. Their Android operating system is the most popular on the planet with a 71.63% market share, though trails Apple's iOS in the U.S. Meanwhile, Google Cloud is growing at 30%, but with 10% market share, still lagging AWS (32%) and Microsoft's Azure (23%). GOOG shares ran up this year, along with big tech, but have plateaued since mid-May. A definite buy on the next pullback.