Homepage
PR Newswire
Mr Market is nervous about Alphabet's competitive moat, just as much as the company executives are. And the latter is probably working ever harder to ensure some of their bets will pay off. It is also tempting to believe that its existing advertising business will remain a sufficient big cash cow in this transition.
Alphabet's current situation remains me of John Hempton's mispriced large cap - His example been Facebook's Cambridge Analytica saga that made it mispriced and became a really profitable investment. Or Terry Smith's comment that when one can't figure out why a quality company is priced so cheap despite been well known and well researched, just go and read up what the detractors are saying.
Alphabet shares take US$138 billion blow as search warnings blare
Court testimony from an Apple executive on Wednesday (May 7) revealed that the iPhone maker is exploring adding AI services to its Web browser for which Google now pays an estimated US$20 billion a year to be the default search engine. Potentially more worrisome: searches on Apple’s Safari fell for the first time last month, according to Eddy Cue, Apple’s senior vice-president of services.
Fears that Alphabet is falling behind in AI have resulted in multiple selloffs since ChatGPT’s debut in late 2022; in February 2023, for example, the stock sank on concerns about the accuracy of its AI chatbot.
At the close on Wednesday, Alphabet shares were priced at 15 times profits projected over the next 12 months, compared with an average of 21 times over the past decade, according to data compiled by Bloomberg. Microsoft is priced at 30 times projected profits, compared with an average of 26.
https://www.businesstimes.com.sg/compani...ings-blare
Alphabet's current situation remains me of John Hempton's mispriced large cap - His example been Facebook's Cambridge Analytica saga that made it mispriced and became a really profitable investment. Or Terry Smith's comment that when one can't figure out why a quality company is priced so cheap despite been well known and well researched, just go and read up what the detractors are saying.
Alphabet shares take US$138 billion blow as search warnings blare
Court testimony from an Apple executive on Wednesday (May 7) revealed that the iPhone maker is exploring adding AI services to its Web browser for which Google now pays an estimated US$20 billion a year to be the default search engine. Potentially more worrisome: searches on Apple’s Safari fell for the first time last month, according to Eddy Cue, Apple’s senior vice-president of services.
Fears that Alphabet is falling behind in AI have resulted in multiple selloffs since ChatGPT’s debut in late 2022; in February 2023, for example, the stock sank on concerns about the accuracy of its AI chatbot.
At the close on Wednesday, Alphabet shares were priced at 15 times profits projected over the next 12 months, compared with an average of 21 times over the past decade, according to data compiled by Bloomberg. Microsoft is priced at 30 times projected profits, compared with an average of 26.
https://www.businesstimes.com.sg/compani...ings-blare