What is the actual bear case for Google at this valuation? It's pe ratio is 26, lower than AAPL and MSFT with higher growth and higher expected growth in the next 5 years and i can only find unconvincing bear cases:
-
regulation: EU is becoming increasingly stricter with data protection and cutting up companies, but Googles different businesses could do well on their own as they are mostly not in competition to each other and even with recent regulations Google growth doesn't seem to slow down, plus it's a big holding among us senators which makes me doubt regulation is coming in the US, their biggest market.
-
slowing growth/competition: guidance so far is amazing and Googl tends to beat estimates. Competition in search engine, YouTube and other Google applications seem weak, only in cloud computing they are the underdog compared to MSFT and AMAZON, which is a small part of their company.
GOOGL is my biggest holding, so I would be very interested why I shouldn't be making it even bigger at the current valuation.
Leave a Reply