David BurrowsAlphabet IncGOOGRISKYOct 22, 2026

They operate diverse businesses, and their cloud business remains strong. Gemini 3 is a fantastic product and can compete with Anthropic. It outperformed last year, so has underperformed slightly this year, but a catch-up will happen in 2027.

It's been in an uptrend since early 2025, but wouldn't jump on it yet. This year has seen a modest downtrend.

He tries to allocate $$ for the best return with the least amount of risk. Knock on the whole complex is the massive spending. Fears that AI could disrupt Search, perpetual anti-trust overhang.

Cloud growth staggering last quarter, revenue up 82%. Search was up, so AI is not cannibalizing it (but increasing queries).  Clear AI payoff through multiple avenues. Trading ~22x PE, growing ~19%. PEG looks really good. Yield is 0.26%.

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.

Revenue'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%.

He 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.

Well 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.

They raised their capex, but shares plunged. GOOG failed to explain the raise in its conference call, but he was blown away by its 82% growth in its cloud business. A better explanation of the capex would have pushed shares higher.

Is a triple threat with web services, is designing its own chips and has Gemini. This and Amazon are the leaders.

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.