Ed

It's almost like all of the uncertainty around those questions kind of turbocharged this pessimism surrounding Google. And that's why you saw this massive devaluation of the stock. But I do want to like step back and look at the valuation And more specifically, look at it vis-a-vis the sum of its parts.

It's almost like all of the uncertainty around those questions kind of turbocharged this pessimism surrounding Google. And that's why you saw this massive devaluation of the stock. But I do want to like step back and look at the valuation And more specifically, look at it vis-a-vis the sum of its parts.

And I just want to clarify, this is sort of a very quick, rough and dirty evaluation, but I think it's helpful in understanding what's going on here. So Google Cloud is a $43 billion business. If we were to apply a comparable multiple, say, of Oracle, which trades at eight times sales, then you're looking at $350 billion in market cap. You look at YouTube. $54 billion business.

And I just want to clarify, this is sort of a very quick, rough and dirty evaluation, but I think it's helpful in understanding what's going on here. So Google Cloud is a $43 billion business. If we were to apply a comparable multiple, say, of Oracle, which trades at eight times sales, then you're looking at $350 billion in market cap. You look at YouTube. $54 billion business.

And I just want to clarify, this is sort of a very quick, rough and dirty evaluation, but I think it's helpful in understanding what's going on here. So Google Cloud is a $43 billion business. If we were to apply a comparable multiple, say, of Oracle, which trades at eight times sales, then you're looking at $350 billion in market cap. You look at YouTube. $54 billion business.

Give it a Netflix multiple of 12x, that's a $650 billion market cap. Then there's all of the other stuff that Google makes money off of, like Google One and Google Health and Waymo and the Google phone. But for the sake of this argument, let's just not even include them. So let's just be very conservative. Let's look at cloud. Let's look at YouTube.

Give it a Netflix multiple of 12x, that's a $650 billion market cap. Then there's all of the other stuff that Google makes money off of, like Google One and Google Health and Waymo and the Google phone. But for the sake of this argument, let's just not even include them. So let's just be very conservative. Let's look at cloud. Let's look at YouTube.

Give it a Netflix multiple of 12x, that's a $650 billion market cap. Then there's all of the other stuff that Google makes money off of, like Google One and Google Health and Waymo and the Google phone. But for the sake of this argument, let's just not even include them. So let's just be very conservative. Let's look at cloud. Let's look at YouTube.

Those businesses, you're looking at a market cap of a trillion dollars, which means that under those assumptions, the search business, which generates $200 billion in revenue per year, that business is trading at the current price at around probably less four-time sales. Because I remember I didn't even include all those other businesses and the other bets that Google's getting into.

Those businesses, you're looking at a market cap of a trillion dollars, which means that under those assumptions, the search business, which generates $200 billion in revenue per year, that business is trading at the current price at around probably less four-time sales. Because I remember I didn't even include all those other businesses and the other bets that Google's getting into.

Those businesses, you're looking at a market cap of a trillion dollars, which means that under those assumptions, the search business, which generates $200 billion in revenue per year, that business is trading at the current price at around probably less four-time sales. Because I remember I didn't even include all those other businesses and the other bets that Google's getting into.

And granted, this is a quick and dirty analysis, but my sense is that when you look at the company, when you do a sum of parts analysis, I think the search business here is massively undervalued. What I think is happening, I think the market's gotten a little too carried away with this whole AI is replacing Google thesis. I mean, you look at how the market reacted to this news.

And granted, this is a quick and dirty analysis, but my sense is that when you look at the company, when you do a sum of parts analysis, I think the search business here is massively undervalued. What I think is happening, I think the market's gotten a little too carried away with this whole AI is replacing Google thesis. I mean, you look at how the market reacted to this news.

And granted, this is a quick and dirty analysis, but my sense is that when you look at the company, when you do a sum of parts analysis, I think the search business here is massively undervalued. What I think is happening, I think the market's gotten a little too carried away with this whole AI is replacing Google thesis. I mean, you look at how the market reacted to this news.

They're basically saying that Google search is doomed. And what they seem to be ignoring is, one, the fact that Google search is actually still growing when you look at revenue. And two, Google is also investing heavily in AI. Like, they're not out of the AI race. And so the idea that you hear these comments from some Apple executive, and then you suddenly decide...

They're basically saying that Google search is doomed. And what they seem to be ignoring is, one, the fact that Google search is actually still growing when you look at revenue. And two, Google is also investing heavily in AI. Like, they're not out of the AI race. And so the idea that you hear these comments from some Apple executive, and then you suddenly decide...

They're basically saying that Google search is doomed. And what they seem to be ignoring is, one, the fact that Google search is actually still growing when you look at revenue. And two, Google is also investing heavily in AI. Like, they're not out of the AI race. And so the idea that you hear these comments from some Apple executive, and then you suddenly decide...

Google searches over, to me, that is exuberant, bordering on irrational. And it seems also to ignore all of Google's other growth investments. So I think Google is way undervalued right now. If you're thinking about buying Google, I would argue the time to buy is right now. It's gotten crushed year to date, down almost 20%. It's trading at its cheapest levels in a decade, 17 times earnings.

Google searches over, to me, that is exuberant, bordering on irrational. And it seems also to ignore all of Google's other growth investments. So I think Google is way undervalued right now. If you're thinking about buying Google, I would argue the time to buy is right now. It's gotten crushed year to date, down almost 20%. It's trading at its cheapest levels in a decade, 17 times earnings.

Google searches over, to me, that is exuberant, bordering on irrational. And it seems also to ignore all of Google's other growth investments. So I think Google is way undervalued right now. If you're thinking about buying Google, I would argue the time to buy is right now. It's gotten crushed year to date, down almost 20%. It's trading at its cheapest levels in a decade, 17 times earnings.