Should I Buy Alphabet (GOOG)? Finance YouTuber Analysis

The analyst recommends buying Alphabet, noting its strong financial position with a low debt-to-asset ratio of 12%. He believes the company can borrow more money at attractive rates to invest in growth areas like AI or buy back stock, which would lower its weighted average cost of capital and benefit shareholders.

“I'm encouraging the management team of these four companies to go ahead and borrow more money as long as they can borrow money at these attractive interest rates. Continue borrowing money. Invest in AI if you think that's lucrative, but if it's not, then use the capital to buy back stock.”

The YouTuber believes Google is a clear winner in the AI race due to its profitability, strong revenue growth expectations (21.2% this fiscal year), and vertically integrated ecosystem including Google Cloud, YouTube, and Search. He argues that its strong financial position will allow it to acquire struggling competitors during market downturns. He would add to his position if the stock drops below $300.

“If we can go back under $300, I mean, that would be a huge gift.”

The YouTuber believes Google's recent stock drop due to AI researcher departures is an overreaction, citing the company's strong AI capabilities (TPU, Cloud, Gemini) and user base as significant tailwinds. He suggests the current price of around $350 per share makes it an attractive top-up opportunity.

“With regards to Google, it's more about okay some key AI players inside the company leaving to entropic to open AAI etc. I think that's an overreaction.”

The YouTuber states he would not mind adding more to Google if its current weakness continues, despite being up 125% on his existing position. He believes it is trading at a very attractive valuation.

“I wouldn't mind adding more to Google if the weakness there continues.”

The YouTuber suggests that if Google's stock price drops closer to $300-$320, it could present a very good buying opportunity. This is based on the current AI sell-off creating potential dips in major tech names, despite the underlying strength of the AI buildout.

“Hopefully, who knows? May maybe we could get Google closer to $300, $320. Who knows? That that might be a very, very good deal.”

The YouTuber is interested in buying more Google shares if the price drops further, specifically if it fills the earnings gap and potentially reaches around $350. He notes that the 200-day moving average is around $300, which would be an ideal entry point, indicating a belief in the company's long-term prospects despite recent dilution news.

“Hopefully I do get to buy even more Google if it drops lower.”

The YouTuber, analyzing Morningstar's buy recommendation, agrees that Alphabet is a quality business with strong fundamentals, including growing profit margins, high returns on capital, and significant free cash flow. He notes AI is boosting Google Search, YouTube, and Google Cloud. However, based on his valuation model, he would only consider buying if the stock price drops to $225, as his personal return requirements are higher than the current implied return.

“For me, guys, it's just a matter of me waiting. Now, I had it on my watch list at 225.”

The YouTuber views Google as increasingly risky due to its rising stock price and the evolving AI bubble, pushing its P/E ratio to 40. He estimates a long-term return of only 5-6%, indicating it's overvalued.

“I am pushing it from here to more risky, more in the AI bubble because the price simply went up.”

The speaker identifies Google as a 'pick to click' and a favorite, noting its strong performance relative to Meta. They imply Google's core business and strategic direction are more sound.

“So, I think the pick to click is Google. I still think Google. And if you look historically except for the you know since really historically um Google and Meta from a price performance basis they're very correlated right but I think they're going to something that we talked about when we were here last we're going to have more stock picking more differentiation yeah and look at communication services in particular terrible performing sector year today you know AT&T but”

The YouTuber supports Google's rumored equity raise through shareholder dilution, despite holding the stock. He believes it's a good strategy for Google due to its higher valuation (30x forward P/E), which makes the dilution less impactful compared to Meta. He also notes that Google has a more established track record of decent returns on capital, making investors less concerned.

“I believe in the case of Google, this delusion is a good thing.”

The YouTuber believes Google is a strong buy, citing its recent antitrust win which avoided a Chrome sell-off, and the judge's recognition of AI competition. He argues that despite recent gains, Google remains undervalued compared to peers, with strong fundamentals, double-digit search revenue growth, and accelerating YouTube and Google Cloud revenues. He also highlights the potential of Waymo.

“I think that Google will continue to go higher. Now at the same time that we celebrate winning in this case, there's some people that are upset that Google wasn't punished more severely.”

Bill Ackman's Pershing Square sold its entire position in Google, contrasting sharply with Greg Abel's decision to triple Berkshire Hathaway's stake. This highlights differing views among 'super investors' on the company's prospects.

“Billman, uno dei nomi più seguiti di Wall Street, ha fatto il contrario di Berkshire su due titoli, cioè ha venduto tutta la sua posizione su Google mentre Abel la triplicava.”

The YouTuber views Alphabet's $80 billion equity raise as a strategic and positive move, despite the immediate stock dip. He argues it provides financial flexibility for AI buildout without excessive debt, capitalizes on a high stock price, and positions Alphabet to outcompete rivals who may need to rely on debt for their AI investments. The dilution is considered minimal (2%) given the company's size.

“So as an Alphabet shareholder, I actually love this move because it's relatively low dilution, only about 2% dilution. Gives them a ton of flexibility if they are seeing the ROI in this AI buildout.”

The YouTuber suggests buying Alphabet as a way to gain exposure to high-growth private companies like Anthropic and SpaceX. Alphabet has significant investments in these companies, which have contributed to substantial non-operating income and asset value on its balance sheet, offering a meaningful, albeit indirect, stake in their growth.

“But, the biggest positions to know about with Alphabet specifically are the position in Anthropic and also SpaceX.”

The analyst maintains a strong buy recommendation for Alphabet, citing its continued growth in search (16% CAGR) and YouTube (22% CAGR), and robust performance in Google Cloud (40% CAGR). He views Alphabet as the 'easy button' for AI exposure, with diversified investments in chips, models, and distribution, and a strong cash flow business that can acquire assets during market downturns. He predicts it will be the first company to reach a $10 trillion valuation.

“I continue to think that Alphabet is the easy button in AI. If you think AI is going to be something big in the future, but don't necessarily know which stock is going to do well, this one gives you kind of exposure to everything.”

The analyst is bullish on Google (Alphabet) because OpenAI's exit from the AI video generation space leaves a wide-open opportunity for Google to dominate. Google can leverage its existing YouTube platform, which has vast video content and generates significant revenue, to train and distribute its AI models. Additionally, Google Cloud's accelerating growth and profitability, driven by enterprise AI solutions, further strengthens Google's position in the AI market.

“This is the one artificial intelligence stock that I own because they have the model creation and they have more importantly the distribution and the business model behind AI to make all of this make sense, make financial sense long term.”

The YouTuber believes Google has won the AI race due to its new universal commerce protocol and Apple's adoption of Gemini for Siri. These developments leverage Google's massive distribution advantages and existing user base, positioning them to monetize AI effectively and take market share from competitors like OpenAI, which struggles with profitability. The Apple deal also shifts revenue from Google paying Apple to Apple paying Google, further strengthening Google's financial position.

“I think Google and Alphabet have won the AI race over chat GPT and and their announcement of a universal commerce protocol I think is really the nail in the coffin.”

The YouTuber recommends Alphabet as a long-term hold due to its strong vertical integration, leadership in AI, and significant investments in Google Cloud, which is growing rapidly with improving operating margins. He believes the current valuation of 25 times earnings is reasonable given its future growth potential and strong balance sheet, which allows it to outspend competitors.

“I think Alphabet is in a much better position than a lot of investors think. Even consider the fact that they own YouTube where you're watching this today. Incredibly valuable. More people are watching more hours on YouTube on TVs. not just mobile devices but TVs than Netflix. So a phenomenal growth story long-term for Alphabet. I think you can just set it and forget it.”

The YouTuber views Alphabet as a core player in AI and technology, highlighting the success of Gemini, continued double-digit growth in search, and YouTube's dominance. He notes its 27 P/E multiple is fair for a company with an 18% 10-year revenue CAGR and 25% 20-year net income CAGR. He also points to Google Cloud's market share gains and its unique TPU ecosystem as competitive advantages.

“Just a phenomenal business, trading at a really fair price. I think over the next year, the market's really going to figure out this is the best play in artificial intelligence.”

The YouTuber is bullish on Alphabet (GOOG) because the recent court ruling allows them to retain their Chrome business, which is a critical distribution platform for their AI initiatives. This removes a significant regulatory risk and strengthens their competitive advantage against other AI companies. Alphabet's strong financial position also allows them to invest heavily in AI infrastructure and development.

“I think this is a very underestimated company in artificial intelligence. They have more advantages than the market thinks.”

The analyst rates Alphabet as the top stock in the Mag 7 due to its strong valuation, with a P/E multiple under 20, and consistent growth in its search business despite concerns about AI disruption. He highlights the growth in YouTube and the Google Cloud segment, which is becoming increasingly profitable and leveraging long-term investments in AI.

“But let's go to the top stock that I think is in the mag 7 today that may not be a surprise to you. That is Alphabet. And I think when you look at Alphabet's numbers, there's it's just too good to pass up at this point.”

The YouTuber argues that Waymo, a subsidiary of Alphabet, is the leader in autonomous driving and is scaling operations rapidly. He highlights Waymo's expansion into new cities, its repeatable playbook, decreasing hardware costs, and strong safety record. This growth provides significant optionality for Alphabet, with Waymo potentially becoming a substantial business generating over a million rides per week by the end of next year.

“I think this is phenomenal optionality for Alphabet.”

The analyst argues that Alphabet is exceptionally well-positioned in the AI market due to its vertically integrated model, including efficient AI models (Gemma 3), TPU development, and extensive cloud infrastructure. He highlights their dominant distribution through Android and Google Cloud, which is growing at 30% annually, and their strategic move into generalized robotics models, suggesting a durable competitive advantage in the evolving AI landscape.

“alphabet one of the stocks that I own in artificial intelligence really it's the only one that has a big exposure to artificial intelligence because it's the only company that I see has a durable competitive Advantage”

The YouTuber holds a significant position in Alphabet, viewing it as a superior investment strategy compared to pure-play quantum computing stocks. He argues that Alphabet offers a diverse and profitable business alongside its quantum computing efforts, providing upside without the speculative risk of companies solely focused on the nascent technology.

“I certainly have a big position in one Quantum Computing leader that is alphabet but you get a very diverse and very profitable business along with that I think that's a much better investing strategy today and that's what I'm implementing because that's upside you don't have to pay for like you do with these Quantum Computing stocks”

The YouTuber owns Alphabet shares, which provide exposure to Waymo, a leader in autonomous driving. However, Waymo is a very small portion of Alphabet's overall business, so it cannot be the core thesis for investing in Alphabet.

“until alphabet splits whmo out really the only exposure you're going to be able to get is through owning shares of alphabet so one of the reasons that I own shares but it can't be the core part of your thesis because it's just a very very very small portion of alphabet's business overall”

The YouTuber highlights Waymo, a subsidiary of Alphabet, as a leader in the robotaxi space with operational services in multiple cities and plans for expansion. He notes their partnerships with Uber and Hyundai for custom vehicles, suggesting a scalable business model that is already deploying services, unlike some competitors.

“Let's start with the industry leader and that is clearly Waymo. This is Waymo, a fully autonomous ride sharing vehicle. They are operating in a few cities today.”

The YouTuber believes Alphabet is the best big tech stock for the next decade due to its strong positioning in AI through Google Cloud and the potential of Waymo. He argues that the core search and YouTube businesses are reasonably priced, providing a solid foundation, while Cloud and Waymo offer significant upside potential and optionality.

“I think alphabet is really the best big Tech stock right now because it's so well positioned for the next decade of growth and it isn't just about search.”

The analyst believes Alphabet's recent earnings, despite market disappointment, were positive. He highlights 13% revenue growth, 27% operating income growth, and strong performance in search and YouTube. Google Cloud's accelerating revenue growth and transition to positive operating income are seen as key future profit drivers, making the stock attractive at 26 times earnings.

“this is a stock that I bought recently and these results actually make me more bullish on the stock going forward”

The YouTuber is bullish on Alphabet, viewing it as a 'sustaining innovation' company that will continue to lead in the AI era. Alphabet's vast user base across multiple products (many with over a billion users), significant cash flow, and in-house chip development (TPUs) position it strongly against newer, less established AI players like OpenAI. The argument is that incumbents with existing ecosystems will extract the most value from AI.

“I would want to be those incumbents this is a sustaining innovation if that's true you want to be with the sustaining companies you want to be with the market leaders today that's why alphabet is one stock that I'm very bullish on”

The YouTuber is buying Alphabet, agreeing with Bill Ackman's recent accumulation. He views it as one of the cheapest big tech companies with a strong moat, citing its search business, improvements in AI products, Waymo, and the growth potential of YouTube, especially with upcoming sports media rights.

“I think alphabet is arguably one of the best tech stocks to buy right now and Amman seems to agree with that”

The YouTuber recently added Alphabet to his portfolio, citing a reasonable valuation of under 21x forward earnings. He is bullish on the growth potential of Google Cloud, especially with its AI capabilities and proprietary TPUs, which he believes are not fully priced into the stock. Additionally, he sees significant optionality and long-term growth from Waymo, Alphabet's autonomous driving subsidiary, which he considers a leader in the space.

“I actually think that alphabet has a lot going for it and it's more than just a search company today on top of that you're getting a pretty reasonable value for investors and a company that's actually buying back stock pretty rapidly.”

The analyst recommends Alphabet as a long-term buy due to its strong position in search and AI, its ownership of Waymo and YouTube, and consistent double-digit revenue growth estimates. He anticipates potential future cash returns to shareholders through buybacks or dividends, similar to Apple's strategy.

“I think we could see alphabet going to a phase where they start to return more cash to shareholders through BuyBacks or dividends this is something that Apple started doing about a decade ago and it's been really successful that for them so it could be something to look 4 from alphabet but just such a strong business that I think you can buy and hold this and hold it for a very long time”

The YouTuber argues that Alphabet, despite initial fears, is well-positioned to benefit from AI. They have a strong user base and technical ability, already using AI in search and ads, and will integrate it further into products like Google Docs and YouTube, locking in customers and adding value in the background.

“alphabet is in a much better position than a lot of people thought in artificial intelligence it's maybe not going to be something that's flashy for them but it works in the background and that's going to be a great place to be providing products people use and allowing AI to add little benefits to those products long term”

Travis Hoium argues that Google (Alphabet) is currently undervalued, trading at a reasonable price-to-earnings ratio for a cash-generating tech company. He believes concerns about AI competition are overblown, citing declining interest in ChatGPT searches and Google's stable search market share. The company's strong operational performance, network effects, and share buybacks further support his bullish stance.

“I think the case can be made that it is remember this is a company that a lot of investors thought was under threat from artificial intelligence just a few months ago but I think that concern has really weighed and we're cutting back into the case where alphabet strengths are really coming to the Forefront.”

Travis Hoium recommends Alphabet, arguing that while AI might disrupt its search business, the company has diverse revenue streams like YouTube and G Suite, and is actively leveraging its own AI models. He believes its scale will be a significant advantage long-term, and it trades at a reasonable P/E of 22.

“I don't think there's any reason to make it more complicated than it needs to be well it's a great company trades for a reasonable price to earnings multiple of 22 right now it has a great balance sheet and I don't think as a technology business it's going anywhere.”

The YouTuber views Alphabet as one of the best deals in the market, offering good value in its core business and significant upside from its Waymo unit. A recent breakthrough in AI memory compression (Turbo Quant) could provide a strong competitive advantage, and Waymo's rapid growth and potential spin-off could substantially increase Alphabet's value.

“And Alphabet, ticker gogg, hasn't escaped the sell-off with shares down 12% this year and into a bare market of 21% from last year's peak. Investors may be missing out though on one of the best deals in the market with a good value on its core business and a lottery ticket upside from the Whimo unit.”

The analyst prefers Alphabet over Meta when adjusting for growth, citing its lower valuation multiples. He observes that Alphabet's higher earnings growth relative to sales suggests cost-cutting and leverage to amplify sales growth into profits, making it a better deal despite neither stock being super cheap in the current market.

“Now growth and earnings are solid for both companies and adjusting for that growth, I like Alphabet a little more here on its lower valuation multiples.”

Hogue suggests Alphabet will benefit from tax law changes, expecting a $17.9 billion cash savings, a 27% bump to its free cash flow. Trading at 17 times price-to-cash flow, just under its 5-year average, he projects a 33% upside if it returns to its average valuation. The company's Waymo unit is also highlighted as a potential 'lottery ticket' for further growth.

“Alphabet, ticker gogg, is expected to see cash savings of 17.9 billion from these changes. That would be a 27% bump from the 66.7 billion in free cash flow over the last year. The shares here at 17 times price to cash flow are trading just under their 5-year average. But assuming that average means a 33% upside to the stock...”

The analyst believes Alphabet is undervalued, trading at 17.5 times price-to-expected earnings, significantly cheaper than peers. Strong revenue growth across all segments, particularly cloud and YouTube advertising, and the potential of its 'other bets' like Waymo, suggest substantial upside. A sum-of-parts analysis indicates its core segments alone could nearly double the stock price, with analysts having an average price target of $218.

“Shares were already the cheapest in big tech, trading at around 17.5 times on a price-to-expected earnings basis. That is a 36 % cheaper than the valuations on Apple and Meta, and about half as expensive as investors are paying for shares of Microsoft and Amazon.”

The analyst argues Alphabet is significantly undervalued compared to its big tech peers, trading at 17.5 times price-to-expected earnings. A sum-of-parts analysis suggests its core segments alone could nearly double the stock price, and its 'other bets' segment, particularly Waymo, offers substantial unpriced upside.

“Shares were already the cheapest in big tech, trading at around 17.5 times on a price -to -expected earnings basis. That is a 36 % cheaper than the valuations on Apple and Meta, and about half as expensive as investors are paying for shares of Microsoft and Amazon.”

The YouTuber identifies Alphabet as a strong value play among big tech, noting its low P/E ratio of 17x compared to peers. He argues its search, YouTube, and cloud segments alone are worth nearly double its current market cap, with potential upside from Waymo. The company exhibits 12% revenue growth and 38% profitability, making it a strong candidate by the 'Rule of 40'.

“Analysts don't see as much upside over the next year with an average target of just 7% higher, but this one is deep value and is going to surprise on a breakout.”

Alphabet is considered a strong buy despite current struggles (down 2% this year) and regulatory threats. It's the cheapest among big tech, trading at 17.5x P/E compared to peers. A sum-of-parts valuation suggests its search, YouTube, and cloud segments alone are worth double the current stock price. Its Waymo division is also a significant long-term 'lottery ticket' in the robo-taxi market.

“Nation, this is a rare value play in tech. And I'm buying long-term.”

The YouTuber is excited about Alphabet primarily due to its Waymo robo-taxi subsidiary, which he believes is significantly undervalued. He estimates Waymo could be worth $1.3 trillion based on Tesla's valuation metrics for its robo-taxi aspirations, suggesting a 60% pop for Alphabet shares from this segment alone. He also mentions a sum-of-parts valuation indicating the company as a whole is undervalued.

“That segment, Whimo, the robo taxi subsidiary owned by Alphabet, is now doing over 250,000 paid rides a week in five cities on a fleet of 1500 cars.”

The analyst suggests buying Alphabet shares for a near-term bounce, noting the stock is trading at an 11% discount to its average price-to-sales valuation. He also proposes a conditional options straddle strategy for August, ahead of the court case decision, to capitalize on potential volatility.

“I think you can buy shares here for a near-term bounce, then change to an option straddle strategy in August.”

The YouTuber suggests Alphabet is a buy despite its volatility and monopoly rulings. He argues that a breakup could unlock significant value, with a sum-of-parts valuation indicating a potential 100% return for investors, not including the upside from its Waymo self-driving unit.

“this simple sum of parts valuation on Alphabet shows a 100% return for investors willing to write out those ups and downs.”

The analyst recommends Alphabet, noting it's the least expensive of the Magnificent Seven stocks, trading at a significant discount to its peers. Despite recent legal worries, the company has strong revenue and profit growth, and a substantial share buyback program. A potential breakup of its segments could unlock significant value, doubling its current stock price.

“Not only did I show you in our May 28th market update that Alphabet is the least expensive of the Magnificent seven stocks, trading at just 20 times on a PE basis and just 5.7 times on that price to sales, a discount of almost 50% to the group's average, but also showed you how split apart the five segments would be worth a combined $4 trillion market cap, a 100% return from the current stock price.”

The YouTuber recommends Alphabet as a safer investment in quantum computing, citing its Willow Quantum chip breakthrough. Similar to Microsoft, he notes that while its large revenue base means less dramatic growth compared to pure-play quantum stocks, it provides exposure to the theme with reduced risk of failure.

“Next on our list aren't the pure play quantum stocks, but tech giants like Microsoft, ticker MSFT, and Google parent Alphabet, ticker G O.”

The analyst argues that Alphabet is a 'must-buy' due to its strong financial performance, including 12% revenue growth and 48% earnings surge, and its dominant market position in search and AI integration. He highlights its undervaluation compared to other 'Magnificent Seven' stocks and presents a sum-of-parts valuation suggesting significant upside, especially in a breakup scenario, which he views as a 'win-win'.

“I'm going to explain why shares of Google parent Alphabet, ticker G OG, should be in every investor's portfolio and how the breakup scenario could be one of your best investments ever.”

The analyst is watching Alphabet's upcoming earnings report, specifically for confirmation of its $75 billion investment in AI capacity. He believes that if Alphabet reiterates these spending plans, it will support the broader AI stock theme. However, any hesitation on this spending could negatively impact tech stocks and the market.

“But even more important than that is going to be what the company says about its previously announced $75 billion investment in AI capacity for this year.”

The analyst suggests looking to pick up shares of Alphabet when its valuation is around five to six times price to sales. He notes that despite massive AI spending impacting short-term profitability, Alphabet is one of the less expensive big tech stocks at 6.6 times revenue, with expected double-digit revenue growth.

“I'd start to look to pick up shares around five to six times price to sales”

The analyst advises avoiding Alphabet, despite it currently meeting the 'Rule of 40'. Concerns stem from potential competition from ChatGPT and Microsoft's Bing, which could erode Google's search dominance, impacting its primary revenue source. Increased spending on AI development is also expected to reduce profitability, leading to a likely drop in its ranking.

“on the other hand I think alphabet ticker G is one to avoid here though it is beating the rule of 40 right now I highlighted last week how Google could see its dominance in search destroyed by competition from chat gbt and Microsoft's Bank ad Revenue tied to search accounts for 76% of total revenues so the the death of that cash cow is going to make even that low 8.7% sales growth hard to reach and increase spending to develop its own AI is going to bring down that profitability margin as well I think alphabet falls out of this ranking fast and disappoints investors”

The YouTuber argues that Alphabet (GOOG) could be 'dead money' for years due to increasing competition in its core search and YouTube segments from AI tools like ChatGPT and rivals like TikTok. Additionally, its Waymo self-driving unit faces significant competitive disadvantages against Tesla, as highlighted by Cathie Wood. These pressures are expected to slow revenue and earnings growth, making its current valuation multiples unsustainable and leading to potential stock price stagnation or decline.

“I'm to detail why shares of alphabet that's ticker G could be dead money for years.”

The YouTuber highlights Google's Waymo self-driving taxi service as a key AI play in transportation, noting its expansion and continuous data collection to train its system. The service is projected to be significantly cheaper than car ownership, suggesting future widespread adoption.

“Google's way most self-driving taxi service is already available in Phoenix San Francisco LA and Austin every day collecting the data to train its system to roll out nationally.”

The YouTuber suggests Alphabet as an example of a company that constantly experiments and innovates, similar to a past successful investment. He highlights its strong search and cloud businesses, along with continuous development in areas like Waymo and AI, which could lead to future defensible advantages.

“I think a great example of this is the Google parent alphabet took our Gog here most investors don't realize it but besides Google's lock on search and the strong business in Cloud it is constant though constantly developing new ideas like it's waymo self-driving unit and Google adventures and everything from AI to Life Sciences.”

The analyst recommends investing in Alphabet, the owner of YouTube, to benefit from the platform's growth without the work of being a creator. YouTube is a fast and reliable growth driver for Google, taking a 45% cut of ad revenue and constantly rolling out new monetization tools. Alphabet also offers exposure to search, cloud computing, and other innovative investments.

“And while you wait for that first viral hit invest in YouTube owner alphabet ticker g-o-g and get the platform growth without the work.”

The YouTuber recommends Alphabet as a cheaper AI stock compared to Nvidia, with a PEG ratio of 1.61. He highlights its search dominance, YouTube, and investments in Waymo and healthcare as future growth drivers, despite initial investor concerns about ChatGPT competition.

“I like Google just not only on its search dominance and search it's YouTube but also it's other investments in self-driving through waymo through Healthcare that could really pay off big in the future.”

The analyst recommends Alphabet due to its dominance in online search, strong growth in cloud services, and a more attractive valuation compared to Microsoft. They also highlight significant hidden value in its 'other bets' like Waymo and DeepMind, which are not fully priced into the stock.

“even though msft has that growth Advantage alphabet might be the better investment on a balance between the cheaper valuation and still good growth and now with Google or alphabet besides just that value and the growth I think there is a lot of hidden value here”

While Google shows strong sales growth and has competitive advantages in search and YouTube, the analyst notes threats from TikTok impacting its core services and Amazon gaining market share in ad revenue. Despite some 'lottery ticket' plays like Waymo, Amazon is considered a better investment due to its more attractive valuation and underrated growth segments.

“I still think alphabet or Google really has some good competitive advantages in its base in Search and and describe every alphabet still dominates that Global search Market with 80 percent of market share but that's not set in stone as we have seen right”

The YouTuber expresses high conviction in Alphabet, stating he owns it in his own portfolio. He believes investors are paying for the core search, cloud, and YouTube businesses, while getting venture investments like AI and self-driving for free, viewing it as a 'lottery ticket bet'. He also includes it in his son's portfolio.

“I think alphabet investors are paying for that core search cloud and YouTube business but then getting all the Venture Investments like AI self-driving and healthcare for free kind of like a lottery ticket bet”

The YouTuber recommends Alphabet for its dominance in online search, YouTube, and Android, coupled with strong growth in cloud services. He emphasizes its impressive profitability, consistent revenue growth, and potential hidden value from its 'other bets' like Waymo, noting the stock is trading at a multi-year low valuation after a recent sell-off.

“Google is now at 5.7 times on a price to sales basis, a 15% discount to its five-year average and an even bigger discount on that price to earnings basis.”

The YouTuber sees Google as a good value, especially if it drops to $305, at which point he would be assigned shares from a cash-secured put. He considers it a high-quality company within the 'Mag 7' that is currently experiencing a healthy pullback.

“So for me personally, if Google goes to 305, I'm excited. I will get assigned and I'll have the stock. I'll have more shares of the stock.”

The YouTuber suggests Google as a buy, including it in a list of companies building the AI backbone. He highlights that Google, along with other tech giants, has committed over $250 billion towards AI infrastructure, expecting these investments to drive significant revenue and stock price appreciation in 2026, which he believes is currently underestimated by the market.

“The names you should be considering. Nvidia, Meta, Google, Taiwan Semiconductor, Broadcom, Palanteer, AMD, Super Micro. Not hype, not hype chasing. Just clear conviction on companies building the AI backbone.”

The YouTuber advises avoiding Google stock at its current valuation, as it is trading at a 16-year high price-to-operating-cash-flow multiple of 25.2, significantly above its long-term average of 17.5. He argues that the stock's recent gains are primarily due to multiple expansion rather than fundamental growth, and an optimistic future is already priced in, requiring the company to double its operating cash flow in five years to justify the current price.

“I definitely would not be interested in buying Google stock at an all-time high price multiple which is where the stock is currently trading.”

The YouTuber views Google as a more attractive investment than Tesla due to its current valuation not factoring in the potential upside of Waymo. He argues that Waymo is an insignificant part of Google's overall business, and if it succeeds, that upside is not priced into the stock, making it a less speculative and risky play compared to Tesla.

“Google is much less speculative and risky because it's underpinned by a highly profitable company. And if Whimo does end up working, then all of that upside isn't even priced into the stock today.”

The YouTuber is considering trimming his Google position because its price-to-operating cash flow ratio is near all-time highs, similar to levels seen in 2021 before a two-year period of no returns. He notes that Google's recent stock price appreciation has been primarily due to multiple expansion rather than fundamental growth, and it is currently trading about 15% above its historical average valuation.

“I've even debated trimming some Google on my own because again last time Google was at this price it did nothing for two years.”

The YouTuber recommends Google as an 'infrastructure layer' play, emphasizing its leadership in quantum reliability with the Willow chip and its Sandbox AQ spinout. Sandbox AQ, backed by Google and Nvidia, sells post-quantum security and AI-driven simulation, turning Google's quantum research into immediate revenue, offering both moonshot potential and commercialization.

“Here's Google's real play. Sandbox AQ. It's an Alphabet spinout that just raised 450 million with Google and Nvidia backing it up. Sandbox AQ sells postquantum security and AIdriven simulation today, turning Google quantum research into immediate revenue.”

The YouTuber holds Google in their portfolio, citing its involvement in AlphaFold, DeepMind, and Waymo as reasons for investment. These are presented as disruptive technologies aligning with the creative destruction theory. A previous price target of $300 was mentioned.

“Personally, I only have Google in my portfolio for Alphafold, Deep Mind, Whimo, and some months ago, I gave a target price of $300.”

Google is identified as a compelling buy, ranking second only to Meta in the YouTuber's 'value ratio' analysis. Its ratio is well below the market median and the 10-year Treasury yield, indicating it is undervalued based on its earnings potential and risk profile.

“The best deal currently is meta followed very closely by the only Mac 7 I own in my portfolio, Google.”

The YouTuber recently bought Google, making it a significant portion of his portfolio. He implies it's a good buy because the market is currently panicking due to tariffs, creating a good entry point.

“I sold Celsius on April 1st and used that money to buy into Google, which now makes up around 20% of my portfolio.”

The analyst believes Google is successfully integrating generative AI across its entire ecosystem, including Android, Chrome, and Search, and is also developing new AI-powered wearables. They argue Google has moved quickly and effectively to fend off competition, demonstrating a strong understanding of the market's direction.

“I thought what they presented last week was as good as it could have been given where they were two years ago, even a year ago, right? like they've moved the puck so fast in the right direction in my opinion that I think you have to give them their flowers.”

The analyst suggests avoiding Google due to the increasing competition in the search market from AI-powered alternatives like Perplexity and OpenAI. While Google is attempting to adapt, the fundamental shift in consumer behavior towards AI-summarized answers rather than link-based search could erode Google's highly profitable search business, leading to potential long-term volatility and internal organizational challenges.

“Google is successfully positioning themselves as battling off these search competitors while they're losing a larger war that they're not necessarily even directly able to focus on within the context of their search business.”

The YouTuber suggests buying Google, especially at its current lower price of $173, viewing it as a 'rinse and repeat opportunity.' He describes it as a slower, six-month play that will eventually deliver significant gains, recommending dollar-cost averaging.

“This one will be slower but it's going to get the job done you have to know the behavior of your play so that you don't have a false expectation like man what's up with Google it ain't going nowhere it ain't it's going to sit but when it wake up take off it's off to the RAC it's like you you just going to look up it's going to be 160 then it's going to be 205 and you going to be like man when did it jump up $40.”

The YouTuber anticipates Google will surpass the $200 level in 2025 and advises buying if the stock drops to the $160s or $170s. They highlight its strong year-to-date performance (up nearly 40%) and impressive 5-year return of 183%, indicating significant long-term growth potential.

“If you see this in a 160s or 170s that is your Quee that is your buying opportunity to get this in route to $200 and then eventually guys it'll go beyond that.”

The YouTuber recommends buying Alphabet (Google), describing it as a 'six-month play' due to its slower movement. He sets a price target of $182 and eventually $200, suggesting it's a stock to 'set it and forget it' for long-term gains.

“182 is the price Target on this one and then eventually 200 guys this is a six month play because it just moves slower than everything else.”

The YouTuber recommends buying Google, advising a dollar-cost averaging strategy. He lists Google among 'quality Blue Chip companies' that are performing exceptionally well, suggesting strong underlying business performance and continued upside potential.

“buying Meta, buying Google, buying Apple, buying Microsoft, buying Tesla, buying Nvidia, buying AMD.”

The YouTuber recommends buying Google on any dip, noting its current price of $144 and a target of $150. He suggests it's a quality stock that will continue to run up.

“Look at Google guys ticker symbol G sitting at 144 everybody that's been in this with me since the $100 level look it we're slowly making it to our 150 Target.”

The YouTuber highlights Google as a stock to watch, noting its recent upward movement and a potential breakout. He maintains a $150 price target, suggesting there's still room for growth from its current levels.

“I still have a $150 price Target on this one we still got a little room to run with this one and I saw it bubbling up slowly today just something to keep your eye on.”

The YouTuber suggests that Google stock could be a good buy if it experiences a minor pullback, making it undervalued. He calculates a fair value of $161 per share using a 9% required rate of return, and would apply a 10-15% margin of safety, implying a target entry price below this fair value.

“Google stock right now is about fairly valued but a minor pullback in this company could have this company worth could have it undervalued a decent amount and could be a good consideration for either maybe lower average entry price or to perhaps jump into the stock if it's not a company we own yet”

The YouTuber currently holds Google shares and plans to continue holding them for the long term. He believes the company has strong growth potential, especially if it were to be broken up, which he sees as a positive catalyst for investors due to the 'conglomerate discount'. He also notes the company's consistent revenue and profit growth, and share buybacks.

“for me on a personal basis I'll be holding my shares of Google hopefully for a real long time as the company continues to grow and if they ever do break it up hopefully we all do fairly well”

The analyst recommends buying Alphabet (Google) due to its strong historical revenue and EBITDA growth, robust free cash flow, and zero net debt. He forecasts conservative future growth rates (10% next year, then 5%) and applies a conservative market multiple, yet still projects a market-beating 13% internal rate of return over 10 years. He also notes the stock is currently trading at a historically low multiple and high cash flow yield, presenting a 'trifecta opportunity' for multiple expansion.

“I think it's actually a really nice company, even if it goes up a little bit I still like it. I think the forecast is conservative enough to where it's a very attractive investment given everything going on in this market.”