Alphabet Inc (GOOG)

Entry point now? The way to think about it is that it’s like a utility. One of their favourite technology investments. When the name is synonymous with the task, that’s a dominant position. Stock has had a great run, but it’s not expensive at 16-17x PE. They’re innovating, investing in all kinds of businesses, they have YouTube which isn’t fully monetized yet. Market pullback is a good time to look at it, but it’s also a difficult market. A great company. You could start a position now and take a very long-term view. Comfortable it’ll be higher in 5-10 years.

(A Top Pick May 14/18, Up 4%) This is a space that continues to grow. He likes that people are coming to their ecosystem.

This company is a search engine ad company, but they also have investments in the cloud and AI, where they are a leader. They have 33 quarters of over 20% growth – phenomenal. He likes the company, but says it could be subject to a pullback when the technical cycle peaks.

Bought it a couple of years ago. They’d be buyers below $1100. As the leader in search engines, they’re going to garner digital advertising dollars as advertising budgets move from traditional spaces to online. Other divisions have promising businesses, such as the driverless car unit. They’re in a secular growth area. Expecting growth of high teens for the foreseeable future. Managed topline growth of 20% plus despite their size. Brought in more financial discipline, reasonable valuation, lots of cash on balance sheet.

(August 1, 2017, Up 15%) One of his largest holdings. 20% revenue growth. There's a lot of investing in alternative business is the criticism, but it's a solid, core holding.

He would probably wait right now. It has moved up in recent months. The PE is too high. Can they sustain the 20+ revenue rate growth? It has accelerated.

It's an advertising machine. They continue to grow at a 20 clip. It's a core holding. A great value stock. It has a 50% market share in online advertising. (Analysts' price target: $1245.88)

Look at the ad spending dollars, greater than TV. We have another great 5 years ahead of us. This is one of the best spots and so it the PE. People go to Google for answers. (Analysts’ target: $1,246.32).

What's your 5-10 year outlook? It's now an attractive entry point given the current pullback in tech stocks. The company continues to grow though operations like cloud services and the driverless car. It's difficult to have a 5-10 year view for any tech company, but she's confident in this stock for the next year. Always be aware of new innovations in this space.

They and Facebook own so much online advertising. They've had 32 strauight quarters of 20%+ growth. They have many investments, like Youtube, that they haven't fully milked yet; and Android operates 60% of the world's cellphones (Analysts' price target $1,236.11)

It doesn't like as good as Amazon or tech peers. It's in danger of seeing lower lows. Hold to see if it breaks above the high-$900s, then buy.

Hold or change to a FANG stock ETF? FNG-N gives you all the Internet plays. It is speculative. We have 6 to 12 months of equity market potential here. Don’t look to it going much beyond the previous highs. It could fall 30-50% in a recession.

Last week's earnings: everything was good except for the width of their margins. He would definitely buy this for many reasons, such as their progress in AI. The privacy issue hitting a lot of tech stocks won't go anywhere soon, but keep
buying Apple.

His model price is $661. He would see $850 as a screaming buy. It had good earnings yet the stock went down. There may be concern of data collecting and privacy. He has owned it for years and would buy more on a pull back.

He likes Google at the present level. If it drops another 5%, he will like it even more. It is showing strong earnings growth. He thinks this is a great business at a reasonable price. If you strip out the cash portion of the price of Google, the stock trades (net of cash) at about 17x earnings. This has a dominant position in online advertising and continues to grow 20% per year, year over year. He sees this as a value stock. This company has spent a lot of R&D money. The public markets haven’t liked this but he thinks that’s the right thing to do.