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Baseman raises Google to STRONG BUY. Price target $3,000
Baseman
Member Posts: 12,366
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
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
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.
YR, YK
Thanks for the tips, though.
Google gonna rule the world. Just wach.
Wishing Elon would turn his sights to cloud services.
In Elon we trust.
Not to mention their rampant censorship of the Internet, and their complicity in the Covid Murder Vaccine Program.