Operating at the Intersection of Technology and the Capital Markets
Tag: GOOGL
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?
A quick glance at sell-side commentary tells a one-sided bearish story. Bearish sellside commentary: One analyst mentions potential Ad headwinds (approximately 78% of GOOGL's Total Revenue is generated from Ads versus approximately 98% for META). "Google is investing to stay in place" says another. (What? Google's product portfolio is not static by a longshot.) "META … Continue reading Google Is Misunderstood
With respect to IBM's (IBM) acquisition of Apptio (private, Vista Equity), it will provide a modest boost to growth. However, I would much rather see IBM pursue acquisitions of Info Services companies such as CoStar (CSGP), Factset (FDS), ICE (ICE), Solera (private), Verisk (VRSK) or any number of other data-centric companies that could provide grist … Continue reading IBM’s M&A Strategy
From the pages of CEORater: I would take Microsoft CEO Satya Nadella over Google's Sundar Pichai on most days and over Meta's Mark Zuckerberg everyday and twice on Sunday. Investing for and delivering growth. MSFT's Nadella does the best job of the three of balancing product investment with delivering profitable growth followed by GOOGL's Pichai … Continue reading Nadella, Pichai and Zuck
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..
GOOGL shares have come a long way since we wrote that they looked attractive on Feb 27th 2023 (HERE). Do MSFT shares deserve the premium they have versus GOOGL shares? (Table below). Not in my view. I appreciate that MSFT does not have the Advertising exposure that GOOGL has, but the valuation premium seems too … Continue reading Google, Microsoft, Amazon and AI
Many companies will fail in their implementation of various AI projects. Many companies underestimate the cost and effort associated with advanced automation / "AI" projects. In addition, companies often fail to clearly define the business problem they wish AI to solve upfront in their AI project process. 1.) Define the Business Problem: This is not … Continue reading AI Failure: Many Companies Will Fail To Scale Their AI Projects
META's value proposition to Ad Buyers was permanently impaired by Apple’s implementation of permission-based Ad tracking which has negatively impacted META's price per ad metric for almost two years (see chart and table below). Further adding to META's Ad woes, Google will phase out third-party cookies next year and replace them with its Privacy Sandbox. … Continue reading META’s Ad Problem
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
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