Alphabet Inc (GOOG)

Their report wasn't perfect. YouTube numbers missed, and they guided capex and marketing higher.

#3 in his fund with a 7.5% position, which is pretty big (he never goes over 10% on a single stock). Great place to buy. 12-month price target of $193. People are getting concerned about the capex, as we've seen with other companies.

This and Tesla triggered today's wide sell-off, but GOOG actually delivered a good quarter with super Google search and cloud numbers. YouTube results though faced tough comparisons over last year, but remains the top streamer. GOOG would have rallied, not sinking 5%, if not for the ongoing anti-tech rotation.

Total revenue rose 13.5% year-over-year to $84.74B beating analyst estimates of $84.29B. EPS also beat expectations of $1.85 coming in at $1.89. Search revenue and cloud revenue beat estimates, however Youtube ad revenue missed estimates for the quarter ($8.66B reported vs. $8.93B expected). Additionally, capital spending rose to $13.2B primarily supporting AI programs which exceeded analysts’ estimates of $12.2B. The market did not like the Youtube ad miss and the continued spending in AI with not much profitability to show for it yet. The quarter displayed solid growth from GOOG as a whole, but ROI on AI has been a painpoint for investors over recent weeks. 
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He bought some more today. Such a wonderful business, Search is going gangbusters. Doesn't seem as though competitors are making any inroads. Will be a leader in AI. Google cloud is reflecting positive margins. New CFO, he hopes smart capital allocation will continue.

Stock's done really well, valuation now not as attractive. The whole market's facing this dilemma.

He recently took profits because it ran up so much. Tech has been selling off this week, and this could fall further, like $160. You can buy this. A great company.

(Note the short timeframe.) Had gotten left behind by META. Sort of like a value play, without going to a value sector. Technical analysis showed it to be an opportunity to buy. Good core holding. Making $$ hand over fist for years to come. 

Potential for disruption from ChatGPT, but Google is very ingrained for average user. A leader because it continues to make changes to business model and look for opportunities; the best companies continue to innovate.

Has long owned this. Early on, it had a high PE, but now it's high growth and low PE. Its growth has outstripped its price movement. This is good for future buyers. Growth rate is 5-6x GDP and 2-3x the market average. Very good positioning; AI will be sweet for them. Some worry that their internet search will fall behind AI and not progress, but he feels this is negative thinking, that this is really an opportunity for Google.

Still likes it. Leadership name, with little or no meaningful competition. Fantastic recent earnings report, with revenue growing 15% YOY, EPS growing 62% YOY. $70B USD share buyback. First-ever quarterly cash dividend. 

Ad revenue continues to be very strong as the economy continues to grow. YouTube is strong, Search is good, dominates mobile search. Optimism about AI. Cloud continues to grow, and it has 1/3 of the market share pie.

Clear uptrend of higher highs and higher lows. 200-day MA is moving higher. Still sees 15% earnings growth going forward.

AI is still in very early stages. We don't know who the leaders will be in 10 years. He has no concerns that GOOG won't be one of the 2 or 3 companies that will lead the AI market, just given what they do. Most of its revenues come from digital advertising, and that business will continue to grow.

AI is not a large part of its revenue at this stage. It needs to grow that segment as do other tech companies.

Bread and butter is advertising. Founder is still involved in the business. Compounds shareholder wealth over the long term at elevated rates, and this will continue.

The 2 mega-cap tech stocks he owns are MSFT and META, both of which he thinks are better businesses than GOOG.

There is a potential threat to their search engine dominance from AI search engines which do all the searching for you just from one key word, giving a concise response with no ads. It is in an innovative dilemma. OpenAI and ChatGPT have one of the fastest adoption rates ever. It could soon release its own search engine. He owns it since it trades at a reasonable valuation and has other strengths such as Google Maps. Be wary of it though, since 80% of the revenue comes from advertising.

Dominant in Search, but more of an AI name these days. Gemini large-language model has been doing great things. Has lots of data to use with AI. Ton of free cashflow.

Recently broke out above important resistance levels. Bullish case, but close to overbought. Potential near term for a drawdown. Very good earnings recently. Continues to dominate the online advertising space. Diverse revenue streams. Will be part of AI in the future. He continues to add, likes it long term.

Looking good from a fundamental and technical perspective. Need earnings to make a stock go higher, and they happened to report earnings that surprised to the upside. Can be a core holding, so hold and look for good entry points to add rather than trading too aggressively. You could put fresh money in now.