Alphabet (GOOG, GOOGL) 02 (Aug 17 - Dec 25)

[behappyalways]

Alphabet Surges After Easily Beating Estimates, New $70 Billion Stock Buyback
https://www.zerohedge.com/markets/alpha ... ck-buyback

[behappyalways]

How $GOOGL makes money
https://x.com/Mayhem4Markets/status/1915730198584033406

[winston]

vested

Google shares plunge after Apple executive’s court testimony

Google’s search traffic on Apple devices declined last month for the first time in over two decades.

Google was losing ground to AI alternatives like ChatGPT and Perplexity.

Apple might soon offer AI alternatives as default search options on its devices, heightening concerns that Google’s advertising revenue could face serious threats from AI competitors.

Source: AFP

https://www.businesstimes.com.sg/compan ... -testimony

[winston]

Alphabet Inc (GOOGL US / GOOG US)

Recommendation : BUY
Fair Value : USD 210.00

KNEE-JERK REACTION TO APPLE’S TESTIMONY

• Large share price reaction overnight on the back of comments by Apple’s executive during the trial against Alphabet

• Investor concerns are likely centered around upcoming search entrants and potential loss of search momentum

• We believe concerns are valid, but overblown as:
(i) commercial query behaviour unlikely to swing away from Google materially in the near term;
(ii) Safari could be seeing a share shift, rather than Google Search seeing fading search volumes; and
(iii) Apple’s portrayal of Google being less-than-dominant is understandable in the current context of the Apple-Alphabet financial arrangement – Reiterate Buy rating with fair value of USD210

Alphabet dominates the online search market, with Google capturing over 90% of the global share and over 80% of the US share.

We expect Google to maintain its leadership position in the search space.

Alphabet operates various segments such as Google Services, Google Cloud, and Other Bets.

The Google Services segment includes a range of products and services such as advertisements (ads), Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

The Google Cloud segment consists of Google Cloud Platform (GCP), Google Workspace, and other enterprise services.

Within its Google Cloud Platform, the company offers solutions such as cybersecurity, databases, analytics, and AI offerings, including their AI infrastructure, Vertex AI platform, and Duet AI for Google Cloud.

As for Google Workspace, it comprises cloud-based communication and collaboration tools for enterprises, including calendar, Gmail, Docs, Drive, Meet, and other enterprise services.

The Other Bets segment focuses on selling healthcare-related services and internet services.

Source: OCBC

[winston]

vested

Alphabet shares take US$138b blow as search warnings blare

By Jeran Wittenstein & Ryan Vlastelica

Apple is exploring adding AI services to its web browser for which Google now pays an estimated US$20 billion (RM85.94 billion) a year to be the default search engine.

Potentially more worrisome: searches on Apple’s Safari fell for the first time last month.

Alphabet said in a subsequent blog post that search queries continue to rise, including those coming from Apple users.

Alphabet shares were priced at 15 times profits projected over the next 12 months, compared with an average of 21 times over the past decade. Microsoft is priced at 30 times projected profits, compared with an average of 26.

Alphabet has about 89.7% of worldwide market share for search engines. That compares with 92.9% share in January 2023, just after ChatGPT’s release.

Current estimates calling for 2025 net income of US$115 billion could be overly optimistic.

Source: Bloomberg

https://theedgemalaysia.com/node/754725

[behappyalways]

Google To Pay $1.375 Billion In Texas Data Privacy Settlement
https://www.zerohedge.com/markets/googl ... settlement

[winston]

vested

Google’s Chrome Worth Up to $20 Billion If Judge Orders Sale

By Leah Nylen and Josh Sisco

Chrome would be worth “at least $15-$20 billion, given it has over 3 billion monthly active users.

The Chrome browser controls about 61% of the market in the US.

Source: Bloomberg

https://www.bloomberg.com/news/articles ... h-monopoly

[winston]

vested

Time For Complete Alphabet Breakup To Boost Google Stock, Says Analyst

by REINHARDT KRAUSE

Until management acts in the interest of shareholders, the entire business will trade at 16 times earnings, which assigns zero value to Waymo and severely undervalues YouTube, cloud and the ad network.

Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The AI Overviews system uses Google's in-house Gemini AI model.

Advertisers still don't have an alternative. "Only after Apple switches defaults and ChatGPT comes in and ChatGPT turns on ads, will we see the impact on revenue. That may take several quarters, which means the overhang is not going away.

Source: IBD

https://finance.yahoo.com/m/e4a6a4e2-9f ... habet.html

[winston]

not vested

Alphabet’s Waymo is recalling more than 1,200 self-driving vehicles to update software and address risks of collisions with chains, gates and other roadway barriers after U.S. auto safety investigators opened a probe last year.

The recall affects 1,212 Waymo vehicles operating on the company’s fifth-generation automated driving system (ADS) software, the company said.

Waymo has over 1,500 vehicles on the road across San Francisco, Los Angeles, Phoenix and Austin.

Source: Phillips

[winston]

vested

Alphabet Inc. (GOOG) Stock Has Multiple, Positive Catalysts, BMO Capital Says

by Larry Ramer

Among Alphabet Inc. (GOOG)'s positive developments are the progression of its Gemini project, its expansion on a number of fronts and its Rich Communication Services program.

Alphabet Inc. (GOOG)'s new initiatives in wearables, TV and automotive, are likely to improve its user metrics.

And GOOG's Android 16 update will enable the operating system to make its offerings more personalized, while its Live Update feature will provide data very quickly,

Rich Communication Services are enabling Android users to interface more effectively with their iOS counterparts.

Source: Insider Monkey

https://finance.yahoo.com/news/alphabet ... 29038.html