Why we like Google

Alphabet remains a compelling investment because it continues to dominate digital advertising, search, and AI, while expanding into high-growth areas such as cloud computing. Despite regulatory challenges, Google's core business remains incredibly strong, with Search processing over 8.5 billion queries daily and YouTube's ad revenue on track to exceed $10 billion annually.

Even with increasing pressure from retail media and Apple's growing ad business, Google still controls more than 50% of US search ad spending and accounts for nearly 28% of global digital ad revenue. This is an incredible money machine!

Businesses within the Alphabet stable, such as Gemini and Cloud, are a sideshow for now. While Alphabet faces ongoing antitrust scrutiny, its recent decision to abandon the phase out of third-party cookies in Chrome, ensures its ad business remains intact. The company is also taking a pragmatic approach by settling lawsuits rather than risking prolonged legal battles.

Overall, Alphabet's ability to leverage AI, expand cloud services, and maintain its dominance in digital advertising makes it a resilient long-term investment, despite regulatory headwinds.