Google Stock: Dealing with Uncertainty
Hi!
Investing is often nuanced and so it's easy to be confused when my view isn't a simple "BUY" or "SELL." Given this perspective, I apologize if I've confused you on my position regarding Alphabet and GOOG stock. To clear up the uncertainty, here's some more detail:
I bought a little Google stock at the end of December below $90 per share because I thought the valuation was pretty compelling. It wasn't a HUGE buy so I didn't feel like it was worth making a separate public video on it. Subscribers can see the link in full here: LINK
It's NOT a STRONG CONVICTION for me personally, as we're still facing a recession and their share repurchases have been very underwhelming. Ruth Porat, the CFO, openly bought Blackstone Stock (BX) but not GOOG. Why? The emergence of OpenAI with a hypergrowth Chatbot also creates unknown challenges to their business long-term. I've been surprised by the rally in GOOG stock so far and perhaps I'm wrong to have not bought more. Perhaps I should have been more aggressive. We'll see. As I call out in this video (LINK), I personally expect to see GOOG make new lows in 2023, so that's why I wasn't as aggressive buying. I don't think we've seen the full impact of a recession yet.
That said, I did make a video a few days ago when news came out that Microsoft was considering a $10 BILLION investment in OpenAI (LINK). This is a small investment for Microsoft that could have an outsized impact on Google's Search business overtime, so I believe it has made Google's future more uncertain. With more uncertainty I have less conviction to buy more Google stock. Layoffs don't help either.
That said, it's not like fears of a recession are scaring me from buying at all. As I call out to my subscribers, I did recently buy two new positions, one that trades below liquidation value and one that trades at 14x earnings and has a long-history of tremendous growth. I'm sorry that I can't share all of my content publicly as it's my paid subscribers that keep the lights on.
My goal with Unrivaled Investing is to help everyday investors. I'm sorry if my videos have confused you. I hope this piece has helped you with greater clarity.
Best,
Daniel
This post is purely for informational and educational purposes. This is NOT investment advice. You should not treat any opinion expressed by Daniel or Unrivaled Investing as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of opinion. Daniel and Unrivaled Investing are not under any obligation to update or correct any information provided on this website or in these videos. Daniel and Unrivaled Investing’s statements and opinions are subject to change without notice. You should be aware of the real risk of loss in following any strategy or investment discussed in this video or on this website. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned by Daniel or Unrivaled Investing may not be suitable for you. Past performance is not indicative of future results. At the time of this publication, Daniel owned stock in Alphabet (GOOG).
