While I love $GOOG I do have a question for buyers of the stock. Do you worry that if there is a recession that Google's primary revenue source might get hit hard.
80% of the revenue comes from ADs, whether from Youtube or Google Search. This combined with the idea that advertising spend is almost always the first expense that gets cut as its a non-essential expense.
Just curious on getting another perspective because I also love the company.
@dollarsandsense I worry about nothing with Google. They have a special kind of business/brand/product that literally nobody on the planet can touch (at least that my eyes can see, Gates already tried, as have others). The kind of recession it would take for me to lose faith in Google would be catastrophic Great Depression type catastrophe, where hope would be lost in everything else first.
Their ads still show me books from my online thrift stores, where I buy all my reading material. So even if I’m broke, Google’s ads are leading me to the $3.99 books at online thrift shops, still plenty of cheap items getting ads on Google. I see 90% of businesses crashing before Google would. Looking at Google’s growth/profitability/efficiency metrics; their valuation metrics are bonkers. You can’t get companies executing like that at a P/E <20 and an EV/EBITDA <15. Kinda crazy.
I bought Google to put in my (most likely for now) forever portfolio beside $MSFT. Only 2 companies I feel comfortable saying that about at present.
Do you think the upcoming Chrome 3rd party cookie depreciation is priced in yet? They’ll likely need to take some medicine on their ads business.
@thefury As far as I follow the issue with the transition to cookieless tracking, I think this will take a long time to implement, longer than expected. $GGOG should be fine, smaller players in the advertising sector will probably have a much harder time adjusting.