Baseman raises Google to STRONG BUY. Price target $3,000
2021 analysts estimates were $60 which I thought was low. I forecasted $80 and now Google is on a $100+ EPS run rate for the year.
At 30 times current year earnings, I've assigned a $3,000 per share price target.
Highlights
Youtube: 6.5 billion daily views as of March, up from 3.5 billion at the end of 2020. That's a lot of ad impressions, folks. They continue buildout of Youtube Premium.
Cloud & Workspace: Q1 revenue grew 46% year-over-year. Cloud lost $1B but is scaling towards the inflection point where it will be cash-flow accretive. Google is pedal down on growing this business. They are third behind Amazon and Microsoft but they should close the gap.
Cash Flow Operations: $19.3 billion.
Free Cash Flow: $13.3 billion in the quarter. $50.7 billion for the trailing twelve months.
Cash Position: $135 billion in cash and marketable securities.
Buybacks: Approved an additional $50 billion. Google continues to reduced outstanding shares
Venture Arm: $4.8 billion, which primarily reflects unrealized gains in the value of investments in equity securities. Several early and late stage investments in high growth opportunity companies. https://www.gv.com/portfolio/
Other Bets
Biotech: Calico and its partner, AbbVie, announced that it has entered clinical-stage programs for new drug therapies for cancer and neurodegenerative diseases, like ALS, Parkinson’s disease and traumatic brain injury.
Waymo: Considered the leader in autonomous driving. Still skepticism, unfounded long term in my opinion. Good read for perceptions of Waymo's adoption rate in Phoenix. https://www.phoenixnewtimes.com/news/waymo-arizona-abrupt-stops-angry-residents-are-still-a-problem-11541896
Comments
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FAANG is rolling through earnings. At this rate, they'll be sponsoring another pandemic
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Like a tool shed I looked at it last year at $1000 Pandemic Peak and didn't pull trigger. Easiest double (+) you would ever make.
YouTube videos are watched one billion hours every. Netflix worldwide is about 500 million hours per day as of most recent statistics I could find fom May 2020.
Youtube cost for that content is nominal. Netflix spends billions yearly.
Any meaningful pullback 5%-8% I would initiate position.
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TTTTTSources said:FAANG is rolling through earnings. At this rate, they'll be sponsoring another pandemic
YR, YK
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I would, but I?ve already bet my life savings of thousands of Italian lira on Nio, DNN and UUUU as a hedge if EVs and nuclear energy make gas pumping obsolete in five years.
Thanks for the tips, though. -
They are the shit, no doubt. Their search engine is the only one worth a shit. Bing is garbage.Baseman said:Wow. Just wow. $26.49 EPS for the quarter.
2021 analysts estimates were $60 which I thought was low. I forecasted $80 and now Google is on a $100+ EPS run rate for the year.
At 30 times current year earnings, I've assigned a $3,000 per share price target.
Highlights
Youtube: 6.5 billion daily views as of March, up from 3.5 billion at the end of 2020. That's a lot of ad impressions, folks. They continue buildout of Youtube Premium.
Cloud & Workspace: Q1 revenue grew 46% year-over-year. Cloud lost $1B but is scaling towards the inflection point where it will be cash-flow accretive. Google is pedal down on growing this business. They are third behind Amazon and Microsoft but they should close the gap.
Cash Flow Operations: $19.3 billion.
Free Cash Flow: $13.3 billion in the quarter. $50.7 billion for the trailing twelve months.
Cash Position: $135 billion in cash and marketable securities.
Buybacks: Approved an additional $50 billion. Google continues to reduced outstanding shares
Venture Arm: $4.8 billion, which primarily reflects unrealized gains in the value of investments in equity securities. Several early and late stage investments in high growth opportunity companies. https://www.gv.com/portfolio/
Other Bets
Biotech: Calico and its partner, AbbVie, announced that it has entered clinical-stage programs for new drug therapies for cancer and neurodegenerative diseases, like ALS, Parkinson’s disease and traumatic brain injury.
Waymo: Considered the leader in autonomous driving. Still skepticism, unfounded long term in my opinion. Good read for perceptions of Waymo's adoption rate in Phoenix. https://www.phoenixnewtimes.com/news/waymo-arizona-abrupt-stops-angry-residents-are-still-a-problem-11541896
Google gonna rule the world. Just wach. -
In. For couch cushion change but I’m in.
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The only thing that can hit Google is getting broken up on anti-trust ground, which, they probably should.
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Agreed. But they legitimately are so much better than everyone else. Not like Microsoft, which was getting soft and just buying superior competitors just to kill them.louism2wash said:The only thing that can hit Google is getting broken up on anti-trust ground, which, they probably should.
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Google cloud is far superior to aws and azure
