YouTube ought to carry a standalone Enterprise Value of approximately $300 billion. YouTube's Ad business: YouTube's advertising business is a $30 billion Revenue business (we annualized YouTube's June quarter Ad Revenue). YouTube's Subscription business: YouTube's subscription services (YouTube TV, YouTube Premium and YouTube music; I subscribe to all three) generate approximately $17 billion in annual … Continue reading YouTube Is A Bigger Business Than Netflix. Why Not Spin Out YouTube?
With Google co-founder Sergey Brin back at work, I guess my hunch about Sundar Pichai (published HERE) was correct.
Apple's new Vision Pro AR headset is a cool piece of hardware/software that is light years ahead of Meta's Quest VR product line. However, at the end of the day Apple goes as the iPhone goes and AR devices won't move the Revenue nor EPS needles for AAPL anytime soon. High-end price point for Apple's … Continue reading Apple’s New AR Headset Won’t Move The Needle But May Hurt Meta..
Google has been the AI King since its founding (we first dubbed it the "AI King" in May 2019). It is good to see Google get a bit of AI recognition on the heels of Google I/O this week. The AI King: Between Google Search, Chrome, Google Photos, Google Maps, Google Translate, Google Live Caption, … Continue reading Google Remains The AI King
I'm fully aware that Ad Revenue (Ad-related Revenue accounted for 78% of Google's total revenue in the March quarter) does not command the same multiple as subscription revenue, but should Microsoft command 2x GOOGL's valuation on an EV/Revenue and EV/ Cash from Operations basis? It would seem that GOOGL's valuation discount to MSFT is punitive. … Continue reading Google’s Discount To Microsoft Is Too Steep
One of my favorite features of Google's Pixel phone is that it is easy to repair. Apple's iPhone has multiple points where the screen connects to the circuitry. This creates repair complexity. Google's Pixel phone has a singular connection point between the display and circuitry. This makes for a simple repair (assuming you have the … Continue reading DIY Repair Google’s Pixel Phone
Run for Alphabet's exit door! Beta Bard flubbed a query! Today's emotional reaction to the Beta version of Google's natural language AI platform - Bard - says more about the reactionary nature of today's unsophisticated, mile wide, inch-deep institutional investor class. My guess is that fewer than 5% have more than a surface-level understanding of … Continue reading Run For The Exit!
The public will see a demo version of Google's conversational AI platform - LaMDA - this year. My view is that Google LaMDA ("Language Model for Dialogue Applications"), will blow OpenAI's ChatGPT out of the water. Google is the AI King. The company indexes more content and invests more capital in Advanced AI than any … Continue reading Google LaMDA: Step Aside ChatGPT
The WSJ reports that YouTube is negotiating with the NFL for exclusive rights to broadcast NFL Sunday Ticket. YouTube/Google and Amazon Prime (Thursday night NFL games), are essentially pursuing a U.S. audience with their respective NFL strategies. The NFL ought to court YouTube in particular given that YouTube - not TikTok, not Instagram nor Snap … Continue reading YouTube & The NFL
AWS is Amazon's (AMZN) most profitable business unit (26% operating margin in the September quarter), and is subsidizing other Amazon business units. While AWS allocates capital to other AMZN business units, competing cloud platforms Azure and Google Cloud are capital allocation recipients. While AWS touts its new, high-end Graviton chips - these chips will compete … Continue reading AWS vs. Azure vs. Google Cloud