Alphabet's earnings growth makes its valuation look attractive. It trades at 21x forward earnings and a 0.47 PEG while EPS grows 34% year over year; shares are down almost 9% year to date. Search still grows 12% and Cloud grows 103%, undercutting the concern that Search will sink the business. x.com  x.com 

Alphabet offers attractive risk/reward because its earlier equity raise suppressed the shares despite strong growth. The $80B-plus raise should suffice for now; another next year is uncertain. Search grew 17% in the prior results, while cloud revenue more than doubled in the latest. Investment losses, not the business, hit EPS; weaker free cash flow puts investors off. A search slowdown would be a warning flag, though Gemini and other businesses could soften the blow. x.com  x.com  x.com  x.com  … Show more

Alphabet is a great business. x.com 

Alphabet is still not expensive for its growth, and a dominant grower can be less risky than a familiar slow one. Staples like Coca-Cola, Clorox and Procter & Gamble trade at premium forward multiples despite going nowhere, while a slow company at 28x can be far riskier than a dominant grower at 22x. The market pays for mispriced future cash flows, not familiarity. x.com 

Alphabet's price action looks weak relative to SpaceX, with the stock down 6%. One possible reason is that Anthropic may be shifting more business toward Micron memory and less toward Google's TPUs, though @mason__capital counters that memory is no substitute for TPUs. x.com  x.com 

Alphabet's vertical integration and moat make its current valuation attractive. Its forward P/E is 19.78, below the 22.51 median shown since 2019. Alphabet is also valued below Tesla and SpaceX combined, despite the chart showing Google's quarterly revenue far exceeding theirs; that comparison does not add up. x.com  x.com 

Alphabet is losing its moat, and with it its place as the market's greatest. @Captionella calls one of Alphabet's recent bungles a likely top-of-the-list historic miss, saying it should have won that race and that protected moats ultimately run dry. x.com 

Alphabet's free cash flow has gone negative for the first time in its history, per Barchart, an odd profile for one of Buffett's last buys at a $4T valuation. x.com  x.com 

Alphabet's 80%+ cloud growth was far beyond what the market had priced in. Negative free cash flow and higher capex will overshadow the good news short term, but Google will be fine, and further selloffs are something to be excited about. x.com 

Alphabet's $80B capital raise, with Berkshire Hathaway committing $10B in a private placement, funds compute for unprecedented customer demand, and executives at Google and Berkshire likely understand that allocation better than skeptical retail investors. Unlike Meta's metaverse gamble, this is a joint effort to fund AI data-center buildout, and the stock fell only 1% on the news while still up 35% since April. x.com  x.com  x.com