Alphabet: AI Brain Drain, Gemini Positioning, Ads Business Trends
Alphabet loses AI talent and lags on performance, but cheaper faster models and Cloud growth support a valuation bounce.
Elevator Pitch
- Loss of key AI talent coincides with Gemini lagging behind competitors on performance
- But a new custom server chip can lead to greater efficiencies and a cheaper model, allowing it to gain share
- Google Cloud is seeing accelerated growth but deteriorating FCF margins are a risk monitorable
- Google's ad budget share is declining, but there are some green shoots with Youtube ads performance
- GOOGL stock has gotten a bit cheaper
- We can expect a bounce from a resistance-turned-support level
