Safety
đ¨Alphabet $GOOGL trades at 133x free cash flow. For context: its pre-COVID multiple was ~20x. And free cash flow hasn't grown since 2021. GâŚ
đ¨Alphabet GOOGL trades at 133x free cash flow. For context: its pre-COVID multiple was ~20x. And free cash flow hasn't grown since 2021. GQG Partners â one of the world's top institutional investors â
đ¨Alphabet GOOGL trades at 133x free cash flow. For context: its pre-COVID multiple was ~20x. And free cash flow hasn't grown since 2021. GQG Partners â one of the world's top institutional investors â just published a full research note titled: "Not Much Alpha Left in This Bet." Their three concerns: 1. AI is cannibalizing Google's core search revenue. Over 50% of searches may now end without a single click. No click = no ad impression. 2. CapEx is exploding. Google Cloud's capital spending now exceeds the revenue it generates. 175â185B in CapEx planned for 2026. Google Cloud generated $ 59B in revenue in 2025. 3. Advertising is cyclical. When the economy slows, ad budgets are the first to be cut. The last time this happened â 2022 â the stock fell 40%. Alphabet is an extraordinary business. But 133x FCF leaves no room for anything to go wrong. And a lot could go wrong.
Source: Gary Marcus (X) | 2026-05-06