Google just had its worst day ever. Down 13% on Friday. And I think it's one of the best dip-buying setups of the year, because Buffett's buying toođđ
$GOOGL is now Berkshire's 3rd-biggest holding, behind only Apple and AmEx. About $37.7B worth. Buffett hadn't been a net buyer in 14 straight quarters. This time, he went all in on Google.
Here's what most people are missingđ
1.Search isn't dead. Everyone's been saying AI would kill it. Q3 search ad revenue was up 12% year over year anyway.
2.AI is already paying the bills. Google Cloud did $30.7B in Q3, up 103%, with about $11.1B in operating profit, and some of that came from selling its own AI chips. Models, chips, cloud: Google owns the whole stack. If a company needs compute, a model or an app, Google can sell it all.
3.The user base is insane. Gemini has 1B+ monthly users. Get even a small slice of them paying for a subscription and that's a whole new revenue stream. Revenue's going up and costs are coming down, so margins have room to run #Google #Buffett #EarningsSeason
$GOOGL is now Berkshire's 3rd-biggest holding, behind only Apple and AmEx. About $37.7B worth. Buffett hadn't been a net buyer in 14 straight quarters. This time, he went all in on Google.
Here's what most people are missingđ
1.Search isn't dead. Everyone's been saying AI would kill it. Q3 search ad revenue was up 12% year over year anyway.
2.AI is already paying the bills. Google Cloud did $30.7B in Q3, up 103%, with about $11.1B in operating profit, and some of that came from selling its own AI chips. Models, chips, cloud: Google owns the whole stack. If a company needs compute, a model or an app, Google can sell it all.
3.The user base is insane. Gemini has 1B+ monthly users. Get even a small slice of them paying for a subscription and that's a whole new revenue stream. Revenue's going up and costs are coming down, so margins have room to run #Google #Buffett #EarningsSeason
