Is Alphabet worth more as two companies?
Its shares cost about 19 times next year’s expected profit. By Bank of America’s count, that price values Search at about 10 times. On CNBC, D.A. Davidson’s Gil Luria argued Google Cloud alone could fetch 30 to 40 times: its revenue more than doubled last quarter, while Search revenue growth slowed to 12% as more questions go to AI chatbots.
Luria sees little that Cloud and advertising share. Alphabet’s own accounts show one thing they do: $7.7B of costs last quarter, mostly shared AI research, charged to neither business.
Together or apart is a strategy call before it is a valuation. Strategist is built to put an independent strategy beside management’s, with every source shown.
Which would you choose? strategist.intelligenxe.com
