No. of Recommendations: 3
Thanks for the thoughtful response. I’m less unhappy about Apple, but that has Warren’s fingerprints all over it, including the trimming before stepping down. Alphabet is Greg’s first big move and it feels to me like a sharp break either way the past. I’m not as confident as you about its alleged moats, and I’m really concerned about the cash flow draining away on a big bet around AI. I agree that Gemini seems to be insinuating its way throughout the search function, but how will they monetize the AI investment? It seems like the capital costs of retaining ad revs have just increased a lot making search a much lower margin business.
As an aside, "Google it" may no longer be a moat. Gen Z says “search it up”.
