Alphabet Inc (GOOG)

Core tech holding. Lagged Mag 7 a bit. Advertising business continues to grow, as does cloud. Generative AI Gemini is being applied to various tools. Generative AI is still in early days, has financial capacity to develop it. No dividend.

They haven't cut costs in the self-driving cars and other research projects, but at 22x forward PE. Apple wants their AI. They hold a rich database of consumer data. They will be a major player in AI, like helping you to plan a trip or find a restaurant. Digital ads cane still come back from the pandemic. This is a long-term hold.

Reports today of it in talks with Apple to license its Gemini AI for Apple's iPhones. That's positive. GOOG is a kind of dysfunctional stock. Own, don't trade Apple, but he can't say the same about Alphabet.

Fantastic value. Trading above market multiple, yet growth is 4-5x GDP and 2-3x that of the average stock. Missteps every once in a while. Don't be too critical, they will work out. Extremely well positioned. In everybody's ecosystem. Likes it very much.

He added shares, because this is facing maximum negativity, but ad revenues will pick up because it's an election year. They're one of the two winners in AI now (as well as MSFT) and selling a a discount to the market.

Is rebounding today as most tech stocks sink. Is it short covering or rotation out of semis? (Today is clear referendum on Tesla, which is down.)

Antitrust concerns. Underperformed compared to some peers. Well managed, diverse revenue streams. Will have to reinvent Gemini, a catalyst for the next 6-12 months. Good entry point now. Buy low, hopefully sell high later on. No dividend.

Still likes the story. Leader in Search, good growth in YouTube. Largest player in advertising. AI hiccups will get solved. Key player in AI and advertising.

There are always risks, but we still consider GOOG quite attractive. When it first came out with its AI solution last year it dropped sharply. But it spends a massive amount on research and we are fairly confident it will be able to protect its market share. 
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It's extremely cheap and everybody hates it.

Overall is an excellent business. Good long term position. Difficult to determine outlook of business in short term. Recession could weigh on company (advertising correlated to strength of market). Generally speaking, business is very strong. Would recommend buying if and when share price falls. 

Really likes. Makes most of $$ from advertising, but lots of other horses in the race. Always in his top 5 holdings. AI revolution costs a lot of money, and GOOG and top peers are the ones who have it. Fears that OpenAI will come up with a better Search "mousetrap" are countered by GOOG's long-standing dominance in that area. Market will still buy on dips.

Their cloud business has rebounded, but their ad business is a retail nightmare with soft numbers.

Their new AI is based on search, helping users search, but their AI will give users results instantly with far less of the user searching the internet. So, how will this impact Google's business model, which is based on searching?

Happy with it. High-bar for last earnings report, so market reaction was tepid. Good, solid earnings. Trades 20-22x forward earnings, very inexpensive when earnings will grow in mid-high teens for as far as the eye can see. Solid, will keep capital safe when markets go sideways or south.