Google plunged 13% in a single day last Friday, its biggest drop ever. The market is panicking, but this could also be the best time to add to your position 🤫🤫 I’m not alone—Buffett is buying too!!!
Google is now Berkshire’s third-largest holding, behind only Apple and American Express, with a market value of about $37.7 billion. After 14 straight quarters of net selling, Buffett has chosen Google this time. I’m willing to trust the Oracle of Omaha’s judgment 😀
A lot of people still haven’t grasped these three things 👇
First, search is far from dead. Everyone’s saying AI will kill search, yet search ad revenue still grew 12% year over year in Q3. Google controls both the user gateway and the advertising ecosystem, and it can still make money by integrating AI directly into search.
Second, AI is already bringing in real money. Google Cloud’s Q3 revenue was $30.7 billion, more than doubling year over year (+103%), with operating profit of about $11.1 billion, including contributions from sales of its own AI chips. Models, chips, and cloud are all in-house. Companies need computing power, models, and applications—Google offers it all under one roof. This isn’t just a story; it’s revenue reported in the financial statements.
Third, its user base is enormous. Gemini already has over 1 billion monthly active users. Even if only a small portion convert to paid subscriptions, that would create a new growth curve. More importantly, management says the cost per response in AI Mode in Search has fallen to its lowest level since launch (take note!!!). As revenue rises and costs fall, profit margins can only keep expanding. #股票财报季 #谷歌 #巴菲特
Google is now Berkshire’s third-largest holding, behind only Apple and American Express, with a market value of about $37.7 billion. After 14 straight quarters of net selling, Buffett has chosen Google this time. I’m willing to trust the Oracle of Omaha’s judgment 😀
A lot of people still haven’t grasped these three things 👇
First, search is far from dead. Everyone’s saying AI will kill search, yet search ad revenue still grew 12% year over year in Q3. Google controls both the user gateway and the advertising ecosystem, and it can still make money by integrating AI directly into search.
Second, AI is already bringing in real money. Google Cloud’s Q3 revenue was $30.7 billion, more than doubling year over year (+103%), with operating profit of about $11.1 billion, including contributions from sales of its own AI chips. Models, chips, and cloud are all in-house. Companies need computing power, models, and applications—Google offers it all under one roof. This isn’t just a story; it’s revenue reported in the financial statements.
Third, its user base is enormous. Gemini already has over 1 billion monthly active users. Even if only a small portion convert to paid subscriptions, that would create a new growth curve. More importantly, management says the cost per response in AI Mode in Search has fallen to its lowest level since launch (take note!!!). As revenue rises and costs fall, profit margins can only keep expanding. #股票财报季 #谷歌 #巴菲特
