Alphabet Inc (GOOG)

Internet names have pulled back in the last few weeks, and are just starting to recover now. This is well positioned for a secular play on Internet online advertising, because they are the leading search engine. They will garner a good portion of the advertising budgets for companies that do that. Online advertising only accounts for about 35% of the overall budget, so she thinks it is going to be continued growth in that category. Attractively valued.

(Market Call Minute) If you have a long term time horizon of 5 to 10 years they are a good company to own.

The only FANG stock he likes, because it is the most profitable and has a wonderful balance sheet, and they dominate the search business. This is one you could definitely buy here. Just keep in mind that the Cdn$ is also down. An attractive entry point.

A wonderful company. The splitting of their divisions was a good thing. Advertising continues to be an important part. The company continues to grow including a shift from desktop to mobile, searches targeting your history experiences, home connectivity, etc. Good valuation.

Best growth in technology. They own the Android operating system and are giving it away for nothing. If you ever monetized that, it would be a huge value for them. What they know about the consumer has so much value. They are positioned better than anybody to get all this growth.

(A Top Pick June 9/15. Up 34.74%.) This is a play on the Internet and online advertising. Online advertising still has a very strong secular growth trend. When looking at online advertising globally, only about 35% of the overall budget is allocated, so there is still a potential of growing at double digits.

He likes to own things that has a secular, long-term tailwind. This company is dominant in advertising, search and in the cloud. These are all high growth areas and will continue to grow. Stock is hanging in particularly well relative to the market.

She finds it is a little pricey. Has been able to consistently hit new highs, but for her, valuations are a concern. Doesn’t see this as a great entry point. Wait until there are some nasty headline risks.

(A Top Pick April 7/16. Down 3.19%.) This tends to do well between March and July. It essentially runs up into developer conferences which happens at this time of year. If it could break out above the upper limit of $800, you could see further upside. There is still a bit of period of seasonal strength left, up to mid-July, which is the end of the summer rally period.

One of the strongest, most innovative companies out there. It is going to be a bit volatile. He believes in the big tech companies right now, which have been undervalued for a long time. Not the growth story it once was, but is considered a core technology holding.

This is great. Not a typical $5 range kind of stock. Volatile, but has been acting very well. If there is any big drop off on an earning’s hit, etc., he would take that as a buying opportunity.

Largest Internet Company globally, specializing in search and advertising. They control 74% of the US Internet search engine market, and nearly 60% of the global search ad revenue. With the YouTube volume growth, increasing mobile ad sales and more cost controls, that should continue to drive the bottom and top lines. Trading pretty cheap at 20X forward earnings. 15% long-term growth rate, gives it a 1.3X PEG, which is pretty good for a large cap technology brand. Added to his position last month in the $705 area. Thinks it can get back up to the $800 level quite easily.

(Top Pick Jul 7/15, Up 36.24%) They continue to grow. It finally had a couple of good quarters. He is comfortable buying it here.

Has strong growth and is monetizing it through ad spending, and is obviously going more digital. They also have their other bets, such as curing aging through Calico. They are getting into the public cloud as well. Also, has 70% market share of Core Search. Growing at 20%. He has a $1000 target on this.

A very difficult stock to get your hands around, because like any high growth stock, it has a 70 P/E ratio. They could come out with profits that are 20%, and yet the stock could go down, because the market was expecting greater growth than that. For him, it is just too dangerous. It is really difficult to beat the market over time, but you can match the market with less risk, by focusing on companies that are more value priced, and this one is definitely not value priced. There are better ideas out there.