Alphabet Inc (GOOG)

One of the Magnificent 3 he owns out of the Mag 7. Ubiquitous. 

It's one of his largest holdings. Waymo is a great product and a pillar of growth for GOOG; how will they monetize it? GOOG leads in autonomous driving. GOOG has the cheapest PE in the Mag 7 and the strongest moat. Isn't worried about their search business declining.

It is the largest player in the search business and has several other businesses such as YouTube and a self-driving division. In digital advertising it has 30% of a $400 billion market which is continually growing. Its monetization of advertising doesn't get enough credit. It is a big spender on the cloud and AI. It has tons of free cash flow and no debt giving it one of the best balance sheets in the world. It is trading at 20X which is less than the market, is undervalued, and can continue to grow in the double digits for the next several years.       Buy 19  Hold 1  Sell 0

Seems to have stabilized and is on the way back up.

It is quite well priced at 21X earnings. It has many divisions and thee is a feeling that the parts are worth more than the whole company trades at. It is spending $75 billion in Capex to support AI and data centres. In the last quarter the growth rate looked to be a little slower than expected. but they have declared that they have more business than they can handle.

Wonderful company. Very constructive on it longer term. Buy on a dip; still 5-10% above his buy price, so just wait. Market has lots of volatility with political rhetoric and trade tensions, so you'll get your chance.

Most attractive of the Mag 7 at 21x PE. Have many businesses--YouTube, search, Android, Chrome, Waymo. It's worth more than the current price. Their recent report noted a slowing growth rate, but they have more demand that they can handle. That's why they're investing more in capex, $75 billion into AI and data centres.

It remains cheap, operating profit is up a lot, are spending huge in capex, though free cash low is up minimally. Reason: they're becoming capital intensive. 

Does not own shares, but current share price could be a buying opportunity. Unsure on how much more the business has to run. Other companies in markets with strong prospects that are much cheaper in valuation. If share prices continue to fall, would consider buying. 

Shares dropped 7.29% on reporting. It got punished for announcing spending of $75 billion in capex this year--punished for investing heavily in growth, which is a big change from last year. It ran up 25% since last September till the report, making it the third-best performer in the Mag 7. The quarter was mixed: slightly weaker revenue and surprisingly  weaker Cloud revenue, but EPS and YouTube revenue beat. Growth slowed, but core advertising is still doing great. And yet Microsoft is spending $80 billion in capex, and Meta $65 billion. What has changed is the arrival of DeepSeek, which has changed the narrative around AI spending: Do megatech companies still need to spend a lot on AI infrastructure? Is the reaction to GOOG an exception or the new norm?

Likes it very much. Very reasonable multiple, surprisingly low in the face of 18-22% annual growth. Market's somewhat skittish about its losing dominance in Search due to AI. It has 93-94% market share in that one area, and undoubtedly will lose some of that. Flipside is that the whole pie is going to get bigger. 

It reports Tuesday. Is their search business cannabilized by Gemini AI? YouTube is on fire and covers up weakness. Listen for any growth in their infrastructure business--if strong, shares will fly.

Both are in his top 5 holdings, so he'd pick both. If he had to choose one, he'd pick GOOG, mainly because it's cheaper. Silicon Valley's known about DeepSeek for a while, and BABA has an even better widget. You're going to see more innovation, especially on the software side.

Anti-trust crackdown a risk, but overall an excellent company. Lowed valuation within Mag 7 cohort. Would recommend buying and holding. 

With Trump, there's a little less concern of threats of breaking up the company. GOOG is doing well in cloud, and Europe won't be as hard on them as before. GOOG is one of the cheaper Mag 7 stocks, but still vulnerable to market risks. Prefers it at $150 than $200, though.