Google: Undervalued With A Rosy Outlook After Q2 (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

• Since my last update, Google has generated 13-14% alpha over the S&P500. Q2 FY23's results make me even more confident of continued outperformance.
• The Google Search's resiliency thesis is playing out as it is leading the advertising recovery.
• Margin expansion in Google Cloud is also playing out as it has posted genuine margin improvement, even after removing the benefits of lower depreciation recognition. Further margin levers exist.
• I am optimistic on Ruth Porat's appointment into the Chief Investment Officer position as it can reduce the bleeding in Other Bets' profitability.
• Valuations are attractive as the company trades at a 13.6% discount to the longer-term 1-yr fwd PEs.

Read the full article here.