Google: I'm Bearish? Search And Margins May Have Peaked

Nov. 30, 2022 9:46 PM ETAlphabet Inc. (GOOG), GOOGL12 Comments
Pinxter Analytics profile picture
Pinxter Analytics
4.82K Followers

Summary

  • Alphabet's Google makes most of its money on search, which I believe may have peaked with younger people going elsewhere for their search needs.
  • With their cloud margins expected to decline as overall margins improve on the backs of layoffs, an overall underperformance is what I expect the most likely outcome to be.
  • As a result, I am slightly bearish on the company's short- to medium-term prospects and will be avoiding the company's shares for the time being.

iPad Displaying The Google Web Site

EricVega/iStock Unreleased via Getty Images

Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Google's parent company, has been one of the biggest success stories in the tech and internet industry. They've been able to do that by leveraging the ridiculous margins in search

GOOG/L Company 10Q

Revenues Breakdown GOOG/L (Company 10Q)

Global Cloud Market Share

Global Cloud Market Share (Statista)

This article was written by

Pinxter Analytics profile picture
4.82K Followers
As part of my earnings growth strategy, I invest, trade and write about small under-covered growth companies which don't get much attention from establishment analysts as well as use the strategy to interpret short and long term moves in bigger, well established companies in the United States, Europe and the Asia-Pacific region.-All articles and the information in them are my opinion based on my own research and analysis and should not be taken as investment advice without proper due diligence and advice from a professional financial adviser.

Disclosure: I/we have a beneficial long position in the shares of BABA, META, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Opinion, not investment advice.

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