Alphabet Inc (GOOG)

Has done well, but still below all-time highs. Still leads in online search and ads. They grew a lot during Covid, but has slowed down since. Generates lot of fresh cash flow. They've developed their own Generative AI company and will embed AI in a lot of their products. Their cloud business is growing at a healthy 30% and have a strong balance sheet. Forward PE is 23x, higher than a year ago. They can keep growing. Are cutting costs after rapid expansion.

High margin business with excellent future.
Relative to peers - trading at fair value.
$250 revenues expected in 2023.
Undisputed leader in search.
Hardware (Chromebooks, and homeware) doing well.
Android has 70% market share.

Will continue to hold.
Strong A.I. team that is on cutting edge.
Excellent advertising business model.
High margin, low capital requirements.
Very good business for the long term investor. 

Alphabet is known for pouring significant capital into R&D, so they will likely master ChatGPT and even make further inroads in AI, but the market will need to wait. In the meantime, the numbers have been mixed at Alphabet, with GOOG missing three of its last four quarters. Its PE has returned to early-2021 levels at 27.55x (vs. 20.27x a year ago) as shares have climbed 40% so far this year, an increase on par with Apple and Microsoft. A recession would dampen Alphabet’s digital ad business, but the company is sitting on a pile of cash and carries no debt. Nice buffer. Long-term, this is solid company. Read Top 3 AI Stocks for our full analysis.

Fundamentally a very strong business.
High margins with excellent cash generating ability.
Strong research in A.I. 
Online ad business very strong with recurring revenue.
Would recommend for long term investors.

Loves its long-term growth. Trading at just above market multiples, loads of cash, no debt. With AI, it's back in vogue. Many products, like Waymo, have not been monetized yet.

Concern over A.I. tech falling behind over blown.
Believes business has excellent prospects with Ad business.
A.I. pie will continue to grow.
Strong fundamentals with high margins.

Has a yellow light on this. GOOG hasn't recovered as much as Meta (up nearly 100% this year), and revenue growth hasn't dramatically risen.

His largest holding. Controversial right now with ChapGPT and how that will affect its Search business. Lots of different avenues for making money with AI, not just language-learning models. 

How can they sustain their huge market share? AI's riskiness threatens to corrode their market share.

The Google cloud will likely outgrow Microsoft's because the latter's is mature. Google has room to grow. If OpenAI becomes a force, then Alphabet's internet search will be threatened, but data doesn't signal this happening now. Reaction to their earnings today sucks. The CEO soft-pedaled AI, a mistake. Now, they must catch up by using Deep Mind and Google Brain more, by incorporating those two into the entire Google suite of apps and software like Gmail. They must do this, but are hesitant to really dive into AI. This is reflected in the share price. However, internet search revenues remain solid. They've saved money through layoffs, but that won't be reflected until the next quarter.

Owns shares in the company.
Believes advances in A.I. very good for company.
Company on the bleeding edge of R&D in A.I.
Excellent long term prospects for the business. 
Good long term investment. 

There's potentially 10% downside in any stock including this. Megatech is up this year because people believe in their balance sheets and seen as safe. They're also more efficient now. There was also FOMO at play.

Under lots of pressure: potentially losing the AI race, global advertising market, some threat to Search. These haven't manifested yet in the financials. Good job at capex spending, invests about 1/3 of cashflow back into the business, and that's why it's so hard to dethrone it. 17.5x earnings, massive amount of hidden value. Be patient.

GOOG faces an existential crisis: Are reports that Samsung will ditch Google and use Bing instead. Also, GOOG faces anti-trust threats from regulators over the digital ad market. Alphabet has invested money in various bets that aren't going anywhere, like Fitbit or Waymo. But if search revenues are split with Bing, that will impact Alphabet hard; search is their core business.