Alphabet Inc (GOOG)

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.

It reported this week. Will spend much more on AI than the street expected. They could get away with this because they reported excellent numbers and are winning the AI race, but is down 3% the past day or so. Shares need to take a break anyway, up 70.5% since the start of 2025. It holds great businesses: Google, Gemini, cloud, Waymo, YouTube.

Yes, capex is on everyone's mind. GOOG's taken a beating, but it's still in a range. Broke the lower part of the range this morning -- just under the support level, but it's sort of coming back. He's not that surprised, as it's a year of transition.

They reported stunning quarter today with their Gemini racking up already 75 million monthly users, but are spending $175-185 nillion in capex, above the street's expected $115 billion. Gemini is winning the AI race so that spend is worth it and will beat its peers.

He owns a large position. A great chart, but not expensive now. They have a lot of irons in the fire, including self-driving cars. You can own this with a long horizon.

It reports Wednesday. It's the best stock in the business. He had seller's remorse and bought this back. Gemini, YouTube and Waymo are drivers.  

Out of the mega-caps, this one is probably in the best position. Really well-positioned on the hardware side (CPUs), and the ad side has a strong moat both in Search and YouTube. This gives them hardware and software exposure. Strong position in quantum computing -- won't move the needle in the short term, but you want exposure and this name is less risky.

Stock's already reflecting a lot of this. Her firm's sweet spot is $1B-100B market cap, so she's not in this name. But thinks it would screen pretty well.

Last spring, shares were beaten up because AI was supposed to eat Google search. GOOG did a great job with Gemini while YouTube is as big as Netflix. The valuation is grown but still okay. Only this and Nvidia were the Mag & stocks that gained last year.

Lots going on with the Mag 7 right now. Both GOOG and MSFT lapped AMZN last year in terms of hyperscalers, AI, and data centres; due to AWS not growing as it was. 

He favours MSFT as a play on data centres and quantum computing. Better that investors choose between GOOG and MSFT as better opportunities than AMZN moving forward.

There were previous concerns over AI affecting its search business but AI has actually been helping its search business. Its latest version of Gemini has had very good reviews. It had a very strong quarter and the cloud business is growing rapidly. Also the ad business is growing in double digits and You Tube is doing very well. She has taken some profits because it is her largest tech holding.