A lot of people have been giving Google a really hard time of late over their troubled entry into AI – with their chat interface Gemini. Additionally, there are investors out there that think OpenAI, Perplexity and others will start to disrupt their search business which is their main revenue stream via ads.

I don’t think this is going to happen and here is my take:

  • Google has 93% market share in search and 50% in total digital marketing. These are not going anywhere.
  • Cloud is growing 30% YoY with margin expansion.
  • Forward PE of 19 is reasonable compared to industry average and to its historical median.

I think I will be buying more for my own investment portfolio.