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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks G / Alphabet (GOOG)
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Author: tecmo   😊 😞
Number: of 442 
Subject: Sum of the Parts
Date: 04/01/25 2:04 PM
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No. of Recommendations: 6
Its been a while since I did a sum of the parts.

			TTM	Q4	Q3	Q2	Q1
Cloud 43.23 11.96 11.35 10.35 9.57
YouTube 36.14 10.47 8.92 8.66 8.09
Advertising 269.21 73.64 67.61 65.37 62.59
Other Bets 1.44 0.40 0.39 0.37 0.28
350.02 96.47 88.27 84.74 80.54

Attaching multiples to these can be tricky, but here is one take:

	           Valuation	Multiple
Cloud 432.3 10
YouTube 289.1 8
Advertising 1346.0 5
Other Bets 7.2 5
2074.7

I don't think YouTube is "worth" $500B, but its clearly growing quickly and could be worth as much as $300B (perhaps even higher). Definitely a significant component of the overall company value. The Cloud business (which I would include AI in) is probably worth almost $500B - note: OpenAI just raised $40B at a valuation of $300B; their revenues are around 1/3 ($12B) of Google Cloud, but are growing much faster of course.

Reminder: Google has about $100B of cash on hand.

BTW: I think Waymo is probably worth much more than $7.2B - possibly as much as $15B or higher; but its very difficult to assess this segment of their business.

For posterity
GOOG : $158 / share --> $1,920B Valuation

tecmo
...





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This community has written 442 posts about Alphabet. The article-length ones it recommended most:
Judge's Ruling · 24 recs · 2025
Alphabet's Century Long Bet · 23 recs · 2026
Will the Sexy Six Strut or Stumble? · 19 recs · 2025
2Q Summary 2026 · 18 recs · 2026
Up about 50% this year · 17 recs · 2023
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