You have made certenly very good points! But i do think that google makes money in research because the advertise inside the websites you enter to do research i think
Ty! It's a very small piece of their revenue. Advertising inside of websites would be under their networking segment, which has been flatlining for years
I don't know how LLMs or other big tech companies will effect Google but one thing I'm sure of is lower valuations and strong balance sheet give me better margin of safety. Let them fight it out.
"Today, anyone savvy will use an LLM to learn about quantum physics - they will probably also use an LLM if they want to plan out a vacation…But when it comes to purchasing the plane tickets and booking the hotels they will use Google."
I know people who google website names and click the first link rather than typing the URL directly in the browser's navigation bar. These aren't old people either.
Since the top link is inevitably an ad where the website buys its own name, that's more $$$ for Google.
People outside of the tech world need to know that the tech savviness of the majority of the population isn't that high.
Absolutely. Even if there was a far better solution, it would take a long time for people to switch. Still, the evidence shows that Google is getting better and increasing its TAM thanks to LLMs. I'll hold off on panicking for now!
Solid article. Latest earnings were solid 👌
appreciate that - yeah their earnings were better than I expected, company is a rock
Nailed it down perfectly! Would love to see your analysis of Amazon
ty Alvaro. I did publish this recently :) https://www.01core.com/p/highlights-from-amazon-ceo-andy-jassys Not a deep dive but definitely addresses how I view Amazon
You have made certenly very good points! But i do think that google makes money in research because the advertise inside the websites you enter to do research i think
Ty! It's a very small piece of their revenue. Advertising inside of websites would be under their networking segment, which has been flatlining for years
I don't know how LLMs or other big tech companies will effect Google but one thing I'm sure of is lower valuations and strong balance sheet give me better margin of safety. Let them fight it out.
Yeah - margin of safety seems solid here at these prices
"Today, anyone savvy will use an LLM to learn about quantum physics - they will probably also use an LLM if they want to plan out a vacation…But when it comes to purchasing the plane tickets and booking the hotels they will use Google."
I know people who google website names and click the first link rather than typing the URL directly in the browser's navigation bar. These aren't old people either.
Since the top link is inevitably an ad where the website buys its own name, that's more $$$ for Google.
People outside of the tech world need to know that the tech savviness of the majority of the population isn't that high.
Absolutely. Even if there was a far better solution, it would take a long time for people to switch. Still, the evidence shows that Google is getting better and increasing its TAM thanks to LLMs. I'll hold off on panicking for now!
Great article, Ben. Would love to read your views on Amazon and Nvidia.
I wouldn't invest in Google anyways.
I don't have that kind of money.