Alphabet

⚠️Dangerous situation: spin-offs at Alphabet / Google⚠️

Personally, I have the impression that many of you are taking this a little too lightly.

The arguments I've heard here so far range from "the USA won't harm itself" to "a spin-off can also have advantages". Both are wrong in my opinion.

First of all, the USA will not harm itself by breaking the Alphabet search engine monopoly, as the most important competitors are also other US companies.

However, I find the idea that shareholder value could be created through the spin-offs even more dangerous. This can certainly be the case for a company like Amazon, whose valuation is 90% based on AWS, but which also has many other exciting business areas that are often forgotten.

With Google, however, the situation is very different. The company consists of a number of business models, none of which make any sense in and of themselves and are only valuable in combination.

This applies in particular to the Chrome and Android divisions proposed for spin-off. These are completely free and their sole purpose is to collect data and place advertisements. However, if these are separated from the group, they are basically almost worthless. Google's products only work so well because they continue to expand the advertising and data network, but are not profitable as independent business entities. This is also the decisive difference to Amazon. They earn money in the retail sector with their online store and in the AWS sector with cloud computing. Both work perfectly well, completely independently of each other. At Meta and Alphabet, however, virtually all products in the group have exactly the same business model. You can really think of it like an amputation. If your arm is cut off, you continue to live and your arm no longer does. The arm doesn't simply become a second person who is also cool.

Sure, you can speculate that Trump will intervene, but otherwise it looks really grim. And although such a dismantling would theoretically speak against Trump's libertarian economic model, it is at least courageous to assume that he has a great interest in helping a diverse, sustainable and progressive company like Google (you could also call it "woke"). It's a bit like the German government under Scholz, which also thought it was positioning itself unilaterally in favor of Kamala and is now no longer politically viable.

( $GOOG (+0,05%) / $GOOGL (+0,04%) )

The US government is planning to take legal action to demand that Google $GOOGL (+0,04%) sell parts of its business, including the Chrome browser or the Android operating system. This is part of an anti-trust case aimed at ending Google's monopoly-like control over the search engine market. Although Alphabet's shares have risen recently, the market is unimpressed by these developments. Experts believe that Judge Amit Mehta, known for his strict adherence to precedent, may not advise breaking up the company. However, the final decision is not expected until 2025.

Did you notice that? $GOOGL (+0,04%)

https://www.cash.ch/news/top-news/google-soll-laut-us-justizministerium-browser-chrome-verkaufen-mussen-770006

Nvidia
$NVDA (-2,33%) has signed a cooperation with Google
$GOOGL (+0,04%)
Quantum AI announced. The goal is to accelerate the design of the next generation of quantum computing devices using simulations based on the NVIDIA CUDA-Q™-platform.

Runs with Alphabet 🤩

Is there anything better than investing in a company where sales have fallen by 15% the net profit increased by 34% and EPS by 37% to 2.12$🥰

Source

https://abc.xyz/assets/71/a5/78197a7540c987f13d247728a371/2024q3-alphabet-earnings-release.pdf

I set up a custody account with Scalable Capital last week.

In addition to my cash flow depotwhich currently pays me a dividend of €709.45 next year (see picture), I will set up a savings plan custody account there.

This savings plan custody account will have a term of 20 years+.

I will pay in €495 per month and divide it between 15 companies as follows:

$GOOGL (+0,04%) - 33€

$AMZN (+0,2%) - 33€

$AAPL (+1,26%) -33€

$ASML (+0,8%) - 33€

$FAST (+1,42%) - 33€

$JNJ (+0,25%) - 33€

$MC (+1,27%) - 33€

$MCD (+1,29%) - 33€

$MSFT (+1,55%) - 33€

$NOVO B (+3%) - 33€

$PEP (+1,38%) - 33€

$PG (+2,31%) - 33€

$UNP (+1,96%) - 33€

$UNH (-0,04%) - 33€

$V (+0,68%) - 33€

The savings plans will be executed for the first time on Monday and then continue on a monthly basis.

I will post a monthly update here

📊 The top shares in leading investment funds are clear favorites:

Microsoft $MSFT (+1,55%) , Amazon $AMZN (+0,2%) and Alphabet
$GOOGL (+0,04%)
$GOOG (+0,05%) can be found in more than 15 portfolios 🏆. Also Apple $AAPL (+1,26%) and Berkshire Hathaway
$BRK.B (+1,54%) are also among the most widely held shares and offer stability and steady growth. These "blue chips" dominate with proven strength.

Future-oriented investors focus on companies such as Nvidia
$NVDA (-2,33%) (AI, chips) and Palantir
$PLTR (+5,1%) (data analysis, AI) 💡.

Conclusion: A combination of big tech giants and innovative pioneers can offer security and growth potential.

Link to the list:

https://www.dataroma.com/m/managers.php