Alphabet: Things Aren't Looking Good, But At Least It's Cheap (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• My highly contrarian 'Sell' view on Alphabet has played out as expected. But now, although I still see many challenges ahead, I am upgrading my view to a 'Neutral/Hold'.
• Alphabet is losing share in the digital advertising market. And it faces further headwinds as de minimis exemptions increase costs for customers.
• Alphabet's profitability remains resilient, but some margin improvements stem from lower wage hikes, which could hurt long-term talent acquisition.
• The longer term technical charts on GOOG vs SPX 500 show ominous signs, especially as unfavorable antitrust rulings loom over as a risk.
• The only saving grace that prevents me from continuing to rate the stock a 'Sell' is the fact that the valuations are rather low and undemanding based on multiple measures.

Read the full article here.