Alphabet Inc (GOOG-Q)

Likes it. Just broken out past old high, positive. Likes stocks that consolidate, go up, and repeat. That's the pattern for this one. Fundamental analysis from his team gives lots of reasons it'll be a leader of the pack.

You have to own the Mag 7, especially if trading at a reasonable price. Top priority is AI spending and driving cost efficiencies. Q3 beat on top and bottom. Trying to maintain dominance in Search advertising. Sees 12% EPS growth from 2024-26.

But trading at a higher multiple of 19x 2026 earnings. PEG is high, but not obscene for a quality name. Way better than COST or HD. You could buy here and still make money, but he'd rather buy cheaper. Try to get it around 15-16x PE, ~$178. January will probably see a regression to the mean.

Some feel that this stock can only go down, but that's too simple. Yes, they will lose market share in search, but that overall market could expand 2-4x larger, which creates fantastic advertising opportunities. What they're doing with Gemini and Google and AI is exciting; it has legs.

It's had a nice move the past week, but is catching up to the group. It remains the leading search engine. The regulatory overhang this year and gen AI's potential competition in search were headwinds. But it's holding in well. GOOG is adding AI in their search, so they're not standing still. The regulatory will remain an overhang though, but it will be a long process. GOOG announced a quantum computing chip while Waymo and YouTube are doing well. The cloud business is up 35% year over year. The sum of the parts could be worth more than what it's trading for.

Is up 40% this year. With a new FTC head, GOOG will likely not face charges of monopolization in search. Also, with GM shutting down its self-driving business, Waymo faces one less competitor.

The caller was selling his Oracle and wanted to buy Google or Amazon. He would choose Google as the most attractive on valuation, growth and consistency. Amazon is under some pressure with the anti-trust situation.

He's not totally up to speed on Perplexity. Mainstay of GOOG's business is Search and advertising, rounded out by other things. Like's its incumbency advantage. It all comes down to user experience. Not necessarily a "winner takes all" market. 

Undemanding valuation. Thesis is strong and very investible. DOJ breakup likely to go nowhere.

Cheaper name in the Mag 7 group with good growth potential. Will benefit from AI. Despite litigation, he can get it for under 20x PE, and it has better growth and ancillary assets than, say, AAPL. We went through this same DOJ scrutiny 20 years ago with MSFT. In the end, it won't add up to too much. In the big scheme of things, any fine will be insignificant.

Own it, put it away, ignore all the noise. One of the great growth stocks, will continue to be. YouTube is reaping rewards from previous investment. Waymo has over 22M hours of self-driving compared to TSLA's zero. Hasn't even tried to monetize the Android system, which runs 60% of cell phones.

Don't trade out, despite the bad headlines.

Wide trading range for a long time, now broken out. Nice uptrend since beginning of 2023. Looks as though it might be in a consolidation phase, which it's had before. As long as holds above $160, still in an uptrend; if it goes below, he'd start to get concerned. Support above $150 is another level to watch.

We have seen a shift in leadership, so some of the bigger names (like the Mag 7) have started to slow down. Keep an eye on that. Tariffs are an issue. But the USD is a bigger factor; if it continues to go up, that can negatively impact multinationals regardless of whether they actually make something or not.

One of his 4 (AMZN, META, GOOG, and MSFT) main holdings in the technology space.

Trades at 20x PE (below where the S&P trades right now), about $70B in free cashflow this year. Core businesses continue to do well. YouTube is one of the fastest-growing parts of the business, ad revenue continues to do well. 

DOJ interest will take a long time to wind through the process. Might even be worth 50-60% more on a breakup. Waymo is the cash-cow-in-waiting. Yield is 0.5%.

DOJ talking of splitting out Chrome. One of his top 5 holdings. Not as volatile as some of the other Mag 7's. Makes $$ on the ads, not especially on the Search. And the advertisers love going to GOOG, not to competitors like Perplexity or Bluesky. Plus, has all kinds of other horses in the race such as cloud and Other Bets. Waymo will become very important with the Trump Bump, Musk, EVs, and autonomous driving.

12-month price target of $200.25, still room to go. Buy some here at $175, and some more around $170.

Has unveiled Gemini, which many think on par with ChatGPT. Lots of exciting technologies, some of which they're monetizing. Exceptional free cashflow from advertising. Still only 20x PE. Buy now, benefit long term.

Still loves it. Should be a beneficiary of new Trump administration, with fewer concerns about DOJ breaking it apart. Trades at 20x forward PE, 16% earnings growth rate, which means a 1.25x PEG ratio and that's fairly cheap in its  space. Q3 beat on top and bottom. Ad revenue and Search remain solid. Chart's on a clear uptrend.

Among the megatechs, this is the most attractive in terms of earnings, value and consistency. Peers like MSFT trade at over 30x PE vs. GOOG's 19.5x, while GOOG grows around 11%. If the US breaks up GOOG, he would buy shares of these spin-offs, like YouTube or cloud.