They boast 70 million ad subscribers. They have tackled every single challenge in the past and thrive. They can be profitable and can afford to explore new areas like live sports.
Deregulation (under Trump as expected) and private equity in the areas of industrials, tech and consumer are two drivers. The banks enjoyed a major rally this week.
The market rally started to broaden in April-March, but fizzled in May-June. That's why the market is hesitating to rotate now--is the Dow and small-cap rally today a blip or a true broadening out?
Search is 57% of their revenue. If such revenues decline, Google won't be able to invest in anything else but search.