Alphabet Inc (GOOG)

The anti-trust suit is more bark than bite, this regulatory overhang. It takes years for the decisions to come down and won't impact the company overall. Google will remain the top search engine; it's so dominant. At most, there will be a very short-term drag on the stock.

There's a regulatory overhang, but they will pay the fine and move on. More concerning is the lack of profit shown from their spending in AI. Peers like Apple and MSFT are showing better performance here. GOOG will underperform vs. peers for an extended period of time.

Phenomenally undervalued. Sold off due to negative headlines on anti-trust. Whether it stays as one or gets broken up, massive amount of value. If it no longer pays fees for exclusive Search access on smartphones, but people still choose to use them, enhances profitability.

20x earnings, gushes cash, debt-free. He'd buy today.

He likes it and it is a core holding in their technology portfolio. It trades at 20X earnings which is attractive since the multiple is better than many of the other big techs. Open AI and Bing haven't taken search business away from them. He likes the underlying business and the advertising part too.

Trades at 20x earnings. Has 30% of the digital ad market. YouTube has ups and downs, but it's growing and people are using it more aggressively such as for DIY projects. Yield is 0.5%.

Will appeal DOJ ruling. Search is an important part of how we live our lives today. Cheap, great business, great margins.

He thought recent numbers were pretty good, yet stock's off. YouTube was a bit weak. Incredible that a stock can move by missing on only 30 basis points. Overdone. Not that expensive at 22x. 

Future overhang is what Search looks like in light of generative AI. Will it lose market share to MSFT? Thinks it will work through all this.

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.