MSFT - Alphabet: Still A Hold

2024-05-22 08:59:14 ET

Summary

• Alphabet reported solid first quarter results, with top and bottom line growing - only free cash flow declined due to high capital expenditures for AI infrastructure.
• Especially YouTube and Google Cloud are contributing to growth, but the spotlight is on artificial intelligence and the rivalry between Google and OpenAI.
• The stock is certainly not cheap, but when held for a decade or longer, it might still be a good investment with decent returns.

Similar to other major technology companies in the United States, I have also been rather cautious about Alphabet Inc. ( GOOG ) – similar to my perspective on Microsoft’s ( MSFT ) or Amazon’s ( AMZN ) stock. However, it seems like I have been wrong in the last few quarters and underestimated the recovery from the previous decline, which lasted much longer than anticipated....

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