
 Motley Fool Money
 Motley Fool Money How Do You Value Alphabet?
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 Feb 5, 2025  David Meier, an investment analyst at The Motley Fool, joins to share insights on Alphabet’s revenue streams and their ambitious projects. He discusses the overwhelming impact of Google’s cloud business, despite recent earnings disappointments. YouTube's advertising strategies are revealed as key to its dominance, utilizing algorithms to enhance user engagement. Later, Jordan Harper highlights the role of PR firms in shaping public perceptions, stressing the importance of critical media consumption and recognizing bias in news narratives. 
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Cloud Computing's Growth
- Alphabet's cloud revenue miss isn't concerning long term.
- The cloud market is expanding, and short-term misses are expected.
Evaluating CapEx
- Compare capital expenditures by analyzing return on invested capital, not absolute dollars.
- Evaluate revenue, profit, and cash flow generated from investments.
YouTube's Secret Sauce
- YouTube's success stems from understanding viewer preferences and providing relevant content.
- This personalized approach drives engagement and informs content creators.






