Alphabet Inc (GOOG)

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.

On average, they have cash, massive cash flow and good growth. On advantage the Mag 7 has is that they have the capacity to spend billions on R&D. GOOG, for example, spends $40B annually. Smaller companies just do not have this advantage. The group would likely grow faster if they were allowed to do acquisitions. They will be continue to be closely tied to the overall economy, and are not immune to declines (i.e 2022). But we think they have several years of growth, if not more, ahead of them. 
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When a new client comes in, he buys a bit. When it gets ahead of itself, he sells a bit. A core holding. Not that expensive at 21-22x. Pressure now, as Europeans are looking at its market share. Waymo starting to get traction. Great outlook. Leg in for a great long-term play of 5 years or more.

Trading at a market multiple, but growing faster than the market. After AI concerns. GOOG got its act together and are now ahead in AI. Hugely profitable and innovative. Are building recurring revenues. He loves using their Gemini AI. It will come down to consumer applications.