No. of Recommendations: 10
Many have been yelling for Abel to “swing you bum” pretty loudly since he took over. Then he (and Warren, apparently) swung on a big chunk of pretty high priced google shares. So Burry might have a point on Abel being susceptible to pressure from the crowd.
Were they high priced? Alphabet shot the lights out on the last earnings report. Virtually every part of the business was up by double digits. Google Cloud revenues increased by 82%, 24% YoY earnings increase overall. Alphabet is already the most profitable company in the world, and their margins expanded.
The concern is that FCF went negative. I get it, but if earnings are growing that fast with expanding margins I think you should try to grow the company as fast as possible. I mean, they are on track to double their revenue in 3-4 years. I think this was a big, fat pitch.
