The Intrinsic Value Podcast - The Investor’s Podcast Network MI Rewind: Alphabet Stock Deep Dive w/ Rihard Jarc
Sep 20, 2024
Rihard Jarc, the Chief Investment Officer of New Era Funds, dives into Alphabet's financial dynamics and its innovative edge. He discusses Google's diverse revenue streams, emphasizing its leading role in advertising and AI. Rihard also explores Alphabet's intriguing ‘other bets’ and assesses potential investment risks. Additionally, he shares his bullish views on Airbnb, comparing its market position against traditional competitors. Tune in for insights on navigating the evolving landscape of tech investments!
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Google's Revenue Mix And Hidden Drivers
- Alphabet's revenue is led by Search, plus significant income from YouTube ads and Google Network.
- Cloud and 'Other' (Play, hardware, YouTube subscriptions) matter for future diversification.
Pandemic And Privacy Fueled Recent Growth
- Pandemic drove higher user engagement and shifted more ad spend online, boosting Alphabet's growth.
- Apple's iOS privacy changes and ongoing cloud adoption added additional tailwinds.
Search Ads Win On Intent And ROI
- Search ads deliver higher return-on-ad-spend because they target user intent, making them more efficient than social ads for many businesses.
- Google suits niche B2B and intent-driven purchases better than Facebook-style platforms.