Alphabet Inc (GOOG)

Has long been a core holding. Until recently, GOOG was always trading at a discount to larger peers because of an antitrust overhang. Likes this a lot, but so does the market. The PE is above 26x (too high) and the free cash flow is just 2%. Is a hold now.

Thinks it'll be a winner. The Mag 7's are tired, but you need to have some exposure from a portfolio diversification perspective.

It did really well until the end of 2025, and the Mag 7 have underperformed this year. He sold this a month ago. The chart has come off and is holding now with a modest bounce. Its RSI has fallen a lot in recent weeks.

Probably his favourite of the Mag 7. Everyone was worried that AI would wipe out Search; instead, Search just incorporated AI. It's really the only one with distribution and scale, so customers will more easily learn to use the AI-incorporated tools than abandon them for new ones. Will be the lead player in AI. Yield is 0.29%.

A year ago was trading at 16x PE, by far the cheapest in the Mag 7. Last year's selling was overdone and still likes it after this rally.

Along with AMZN, looks pretty compelling here.

From a technical perspective, the MAGS ETF is trading below the 200-day MA, with relative RSI weakening. This group is less attractive, and still over-owned.

He's still holding this name, as it's one of the strongest of large-cap tech. Across the firm, they have a 7% technology weight. That's extremely underweight.

He has owned since 2015. Google is emerging as an AI juggernaut and in fact AI was built on their transformer architecture. It is building its own chips with its tensor processing unit to do what they want them to do. Gemini has 750 monthly users and is integrating with other divisions.. Some think it will become the most valuable company in the world.

Behemoth of the internet. Gemini keeps leapfrogging with ChatGPT. It has the $$ to spend, whereas ChatGPT has to keep raising money. Low 20s PE, revenue will grow high mid-teens. A key part to the AI race is that its database is huge. Yield is 0.27%.

Hasn't trimmed. Search did not go away because of ChatGPT. Nor is it way behind in AI. Cloud business continues to grow, still third-largest player. Waymo is everywhere, an undervalued asset. Ads still doing well.

A year ago, lawsuits and AI worries. Look where it is today. Now people are worried about MSFT and META. In a great position. These are the most adaptive, well-managed businesses ever. GOOG a bit pricey right now, but in a really good place.

The metric he watches on all the hyperscalers is the margin they earn on their AI spend. Margins are in fact stable for GOOG (and MSFT) despite all this AI spending; they're making money on AI and saving costs. He owns all the hyperscalers who will benefit from all this AI spending.

One of her highest-conviction tech positions. Massive run. She sees concerns about spending as an opportunity. Trades ~22-23x forward PE and lots of cashflow, still reasonably priced for what you get. She's not trimming. Upside of 15-20% would not be a surprise.

2025 proved that its various businesses are accelerating together, not trading off against each other. Spending ramp up is big, but so is the opportunity. Any weakness is a reason to add.

Owns GOOG and AMZN, but not MSFT. All are spending at least $100B this year. It's going to be a show-me story. Investors really want to see if spending will result in future earnings. He thinks it will, but there's a bit of fogginess around that. 

Plus, markets are shifting away from mega-cap tech, putting pressure on some of these names. If your time horizon is 5 years, not 1, you should do well with most of these hyperscaler names.

Primary reason for stock taking a hit would be valuation. Loves this company, but the multiple re-rated higher once market realized it actually wasn't behind on AI. Phenomenal, long-term compounder. Valuation's a bit rich right now.