Interesting question. I don't really think of it in those terms. Of course all the individual parts are promising. But I take a step back and see Google as one of the better ones of the magnificent sevens. It's also the cheapest. So you're getting a lot - 30% roic, 25% roce, high margins, lots of cash, double-digit revenue, and 2-year forward eps of over 20%. A nice sum of all the parts.
Clear and concise write up. That's the expected upside. I'm also writing up about Google on my next post of 365 Days of Learning Investing while mostly focusing on valuation.
Thanks for this thorough breakdown. I like them too.
Which segment do you like the most?
Interesting question. I don't really think of it in those terms. Of course all the individual parts are promising. But I take a step back and see Google as one of the better ones of the magnificent sevens. It's also the cheapest. So you're getting a lot - 30% roic, 25% roce, high margins, lots of cash, double-digit revenue, and 2-year forward eps of over 20%. A nice sum of all the parts.
Google is such a powerful company!
Thanks Ray! Just bought Google, and I found this breakdown helpful.
Excellent overview! This drop after earnings can definitely be seen as a good entry point. I appreciate you sharing this.
I've actually recently wrote about GOOGL
https://divistockchronicles.substack.com/p/alphabet-inc-waiting-on-ai-breakthrough
Completely agree, very good article, thanks!
Thank Sir!
Clear and concise write up. That's the expected upside. I'm also writing up about Google on my next post of 365 Days of Learning Investing while mostly focusing on valuation.
Interesting, do you find my valuation assumptions reasonable, excessive, or conservative?
They are very reasonable. And 50+ analysts covering the company agree with you, too. :)
Thanks,Ray, a wonderfully presented case, and one which is pretty hard to argue against.
Thanks, Jeffrey. Are you more bullish on Cloud or YouTube?