GOOGL - Google: Significant Upside Potential Even With Antitrust (Rating Upgrade)

2024-05-06 05:14:50 ET

Summary

• Alphabet's Q1 results show strong growth in YouTube, Search, and Google Cloud, easing concerns about antitrust risks.
• The company's diversified business model supports a buy recommendation, with potential for sustained market leadership.
• Alphabet's AI progress, including the introduction of Gemini 1.5 Pro, and strong financial performance contribute to an attractive risk-reward scenario for investors.

Investment Thesis

I believe Alphabet's (GOOG) (GOOGL) Q1 results have reframed the company’s growth potential through showing the stand-alone power of each of their business operations within YouTube, Search, and Google Cloud. The company's stock jumped 12% following an earnings beat driven by a 15% revenue increase, which was fueled by YouTube and Google Search earnings....

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