Alphabet Inc (GOOG)

He's not totally up to speed on Perplexity. Mainstay of GOOG's business is Search and advertising, rounded out by other things. Like's its incumbency advantage. It all comes down to user experience. Not necessarily a "winner takes all" market. 

Undemanding valuation. Thesis is strong and very investible. DOJ breakup likely to go nowhere.

Cheaper name in the Mag 7 group with good growth potential. Will benefit from AI. Despite litigation, he can get it for under 20x PE, and it has better growth and ancillary assets than, say, AAPL. We went through this same DOJ scrutiny 20 years ago with MSFT. In the end, it won't add up to too much. In the big scheme of things, any fine will be insignificant.

Own it, put it away, ignore all the noise. One of the great growth stocks, will continue to be. YouTube is reaping rewards from previous investment. Waymo has over 22M hours of self-driving compared to TSLA's zero. Hasn't even tried to monetize the Android system, which runs 60% of cell phones.

Don't trade out, despite the bad headlines.

Wide trading range for a long time, now broken out. Nice uptrend since beginning of 2023. Looks as though it might be in a consolidation phase, which it's had before. As long as holds above $160, still in an uptrend; if it goes below, he'd start to get concerned. Support above $150 is another level to watch.

We have seen a shift in leadership, so some of the bigger names (like the Mag 7) have started to slow down. Keep an eye on that. Tariffs are an issue. But the USD is a bigger factor; if it continues to go up, that can negatively impact multinationals regardless of whether they actually make something or not.

One of his 4 (AMZN, META, GOOG, and MSFT) main holdings in the technology space.

Trades at 20x PE (below where the S&P trades right now), about $70B in free cashflow this year. Core businesses continue to do well. YouTube is one of the fastest-growing parts of the business, ad revenue continues to do well. 

DOJ interest will take a long time to wind through the process. Might even be worth 50-60% more on a breakup. Waymo is the cash-cow-in-waiting. Yield is 0.5%.

DOJ talking of splitting out Chrome. One of his top 5 holdings. Not as volatile as some of the other Mag 7's. Makes $$ on the ads, not especially on the Search. And the advertisers love going to GOOG, not to competitors like Perplexity or Bluesky. Plus, has all kinds of other horses in the race such as cloud and Other Bets. Waymo will become very important with the Trump Bump, Musk, EVs, and autonomous driving.

12-month price target of $200.25, still room to go. Buy some here at $175, and some more around $170.

Has unveiled Gemini, which many think on par with ChatGPT. Lots of exciting technologies, some of which they're monetizing. Exceptional free cashflow from advertising. Still only 20x PE. Buy now, benefit long term.

Still loves it. Should be a beneficiary of new Trump administration, with fewer concerns about DOJ breaking it apart. Trades at 20x forward PE, 16% earnings growth rate, which means a 1.25x PEG ratio and that's fairly cheap in its  space. Q3 beat on top and bottom. Ad revenue and Search remain solid. Chart's on a clear uptrend.

Among the megatechs, this is the most attractive in terms of earnings, value and consistency. Peers like MSFT trade at over 30x PE vs. GOOG's 19.5x, while GOOG grows around 11%. If the US breaks up GOOG, he would buy shares of these spin-offs, like YouTube or cloud.

Excellent business - continues to own. Very strong margins with dominant position in internet "search" business. Margins very high with advertising. New technology in A.I. will add further product offerings, and better search results. Expecting share price to continue to rise - currently priced very well. Earnings expected to rise. 

Last night's results were excellent. Earnings up ~37%. Strength across the board. Share buybacks continue at a meaningful clip. Cloud business really picking up, driven by demand for generative AI.

It beat top and bottom line. Sentiment was so negative heading into the report last night, so the set-up was good. Youtube--great quarter. AI has helped GOOG. Don't count them out, their top position in internet search--we'll see. The call was also good. The stock still has legs. They didn't just clear a low bar, but they beat on every line.

They delivered a great quarter. The bar was set low. Cloud is up 35% YOY. $13 billion in capex and their AI offering is producing, despite talk of GOOG lagging the AI race. It trades at 22x PE. YouTube missed last quarter, but up this one.

Their conference call was a home run. No, internet search is not dead. Cloud is more profitable than last quarter. YouTube is actually doing 137% of Netflix in ad revenues and subscription. They have clear AI plans.

It beat top and bottom line. Sentiment was negative, so that set a low bar that they beat. You're starting to see the benefits of their AI capex with cloud revenue up 35% and the core search business is okay. Is not surprised that shares are up (over 5%) this morning without pulling back. Institutional buyers will re-enter this name.