BREAKING UP GOOGLE! GOOG STOCK CHEAP? DOJ Ruling & Valuing Alphabet

The Depart of Justice is looking to BREAK UP Google. What does this mean for Alphabet, or Google stock (GOOG)? My thoughts on the implications of a break-up and potential valuation of the different pieces of Google. Is Google stock CHEAP?

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[emailabir]

I think breaking up Google will be a huge value unlock for investors. People use Google products not because they bribe other companies to embed their product but Google products are genuinely good.

[GeneralMerchandiser-rv]

Opportunity to add more Alphabet shares. Anyone remember FB share price that was thrashed down then climbed up few times more its earlier low price?

[ThomasCook-sw]

10 times earnings too low. Google undervalued.

[christianb.]

I use mostly Apple devices and on each I use google only - photos, YouTube, YouTube music, google maps, gmail, Gemini etc & etc and of course I set up google as my search engine for all devices. Also in my car, with Car play I use google maps and Waze etc. In the end I would love to own shares of Youtube for example or google could together with Alphabet ones.

[juliancochran]

You are pricing cloud such that its growth is organic, however its revenues are rising because the core business is reinvesting cash into cloud. If cloud was treated as a standalone business it wouldn’t have the same amount of cashflow to grow and would need to issue shares to grow at the past rates. You are pricing with the assumption that the huge cash allocations from search would continue happening if jt was acting as a standalone business.

[solomonng]

I think Google not likely to break up. Breaking up google will also mean other big tech can be broken up which make US big tech weaker. Like what china did to Alibaba and tencent. Likely that the deal to make search default will user can decide on which default search engine to use.

[tarundubey]

Google undoubtedly the best deep value stock which is severely undervalued

[magalengo]

Li Lu has about 40% of his U.S. holdings in Alphabet, I have held this investment since 2012 and bought additional shares last year.

[GeneralMerchandiser-rv]

Alphabet is at super bargain price. Do not miss this great opportunity. Alphabet is so iconic for USA. I believe there is no reason to make things difficult for Alphabet.

[unrivaled]

What happens if Google gets BROKEN UP by the DOJ? My initial take and thoughts on the current valuation. Is ~10x for Google's core business just too cheap or a realistic reflection of the uncertainty and challenges they now face? For more compelling ideas check out www.unrivaledinvesting.com

[martinlund]

Maybe true value will be unlocked in the long run, but by breaking it up add an instant holding co. discount of ~15% and then some for added uncertainty on shorter term.

[dontplayformenero]

Great video Daniel. My question would be regarding Wall Street's opinion. I used to work at Fidelity (albeit not in a stock picking role) but they would only look out a couple of months at most, they were in no way interested in 3 years or 5 years. So I wonder is the low valuation have anything to do with Wall Street's opinion? Do they care about the long term dangers for search or do they just care what happens this quarter in order to prevent cash outflows from clients?

[lovebedi]

Serious threat from open ai, so google, unless it makes tons of revenue from waymo, is valued right.

[actondon]

Imagine Microsfot then pay Apple 20B and only find out BIng gain 1% more user to 6% lol

[philipwelch]

In 10 years google hits $1000? I would be surprised if it doesn't

[TechPeeves]

nice photoshop :) A sick Google logo! Logo of the year!

[Fous]

GOOGLE SPLIT WOULD UNLEASH EXTRA VALUE IN MANY FIELDS AND COULD BOOST INNOVATION IN Ai

[gorgeouswilderness]

I think 35/30 times multiple is very optimistic scenario

[pebos]

I don’t think Google will be broken up just pay off the right people next time.

[soup]

break it up! it's worth more broken up!