Right now google is one of the best value plays. Trading at a lower multiple than starbucks and nike!! If you have cash and dont know where to stick it, you buy google. It has failed to participate in the august recovery rally!
Why is google trading so cheap? Lawsuits are causing uncertainty. Competitors are pissed that google is such a successful business and that they cant compete.
On september 6, google will go to court. The gov decides whether to break google up in some way or shape or form for alleged monopoly or to fine them. Government is simply panhandling for money here. They dont give 2 craps about monopoly. Either way, it doesnt matter. The uncertainty is whats causing google to trade so low. I predict that after september 6, google will shred faces.
On top of that, Google will now save 20 billion dollars per year after judges disallowed their deal with apple. The market is heavily mispricing google. Which is how regards like you and me can make money.
This coming week I plan to yolo grandma level money into january ATM calls in 3 chunks. First chunk tuesday. Second chunk if google drops multiple $s before friday. And the remaining on friday morning. Another strategy I am considering is yoloing everything friday morning. I will post positions later this week. Court is at 2 pm friday.
Google is the most undervalued stock in the market right now.
byu/tomato119 inwallstreetbets
Posted by tomato119
33 Comments
Monopoly play heh
P/e of 24 decent but a bargain would be below 20 so a price of 140 or lower
Yeah. I actually think it will pop 25% or more, soonish. Thanks for reminding me, will add shares next week (have some, but more – I’d been building AMZN on the dip that is over.)
Intel is more underrated than Google.
sold puts on it as i remain neutral – bullish.
So, this is the top for ‘24. Poots it is.
Don’t fight seasonality. Also the 2yr/10yr bond yield curve is only .006% from normalizing. Tread carefully bro
if tiktok gets banned early 2025, google and meta stock will go much higher, especially meta
Those lawsuits are far more serious than you may think, and other governments are considering following suit. Doesn’t matter how great a company is, litigation – and even the threat of it – can suppress a stock’s value for a very long time.
Do it for grandpa
LEAPS will be the safer bet for me nowadays I’ve been YOLOing homeless level type shi money 😂
Thanks for the reminder, legitimately almost forgot about Google since it’s had some meh price action recently.
One thing to consider for your Tuesday buy is to look at IV. I haven’t checked myself but I strongly suspect an antitrust hearing is going to be accounted for in IV, and the volatility crash will hurt you bad even if the trade goes your way.
I’m staying away from Google until they fire the CEO. He is an idiot.
So are you saying buy calls in Google?
You’re coming to the right conclusion but with the wrong way of looking at it. Their ads business will continue to sustain them no matter if they get broken up or not. The lawsuits have nothing to do with it. Thing of it is, the ads business, while it will incrementally increase, has put them in a precarious position. If they move away from using cookie data, they undermine their own business model. It’s why they’ve kicked the can down the road by 4 years.
Google, didint they stagnate the ai buisness with 5 years just because they were afraid to lose search and ended up now trying to catch up with openai and display a lot of shortcommings and trying to fake a better product? I wouldnt mind them failing a bit actually but maybe they are undervalued?
Google is trading at a lower PE for good reason. SearchGPT is right around the corner. Google’s biggest cash cow is going to face competition like never before. As a business, it will be fine, but rapid growth is no longer guaranteed.
ride the lightning
buying puts next week
Yeah gotta dump my google then
When the DOJ broke up Ma Bell in the 1980’s it unlocked a ton of value for AT&T stockholders. Google forced divestiture of YT, AdX, GCM, etc likely would be huge for their stockholders too.
If you are on the inside and know it’s a sure bet, but the market doesn’t think so. This is the risk premium.
top is in
No it’s not.
Which calls would you buy?
they don’t “save 20 billion” dude…. if they wanted to save them, they just wouldn’t make that deal
I hate to say it but i agree with this internet turd dropper
I wouldn’t say it’s the superlatively most undervalued stock in the market, but it’s starting to look more attractive.
Google sucks. All they have is legacy stuff that keeps getting worse. Eventually someone will break their monopoly by just providing a good product. Don’t buy this shit pile
The biggest threat is simply that if OpenAI introduces a much better alternative to Google Search, it could completely change the way we use the internet today.
Since 60% of Google’s revenue comes from search ads, the stock could be doomed.
When was the last time google created an innovative product and did not simply buy a finished one and drive it against a wall?
Wallstreetbets and value play are two words I never expected to see together