Google: How To Profit In Different Scenarios, Even With Some Of The DOJ Proposals Passing

Summary:

• Alphabet’s wide moat, driven by Google Search, YouTube, and Google Cloud, supports its strong economic position and future growth potential despite market volatility.
• GOOGL’s valuation appears attractive, with a 20% upside based on a DCF model and about 13% undervaluation compared to five-year averages.
• DOJ’s proposed remedies introduce high uncertainty, potentially impacting Google Search revenues and market share, warranting a cautious investment approach.
• A bull put spread strategy is recommended to capitalize on an increasing, stagnating, or even slightly decreasing stock price.

Investment Thesis

Wide moat stocks usually trade at a premium versus the average, boosted by their ability to preserve (or even expand) their customer base and to generate high ROIC (Return On Invested Capital). In a generally expensive market, where it’s particularly difficult to

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have a Bull Put Spread position in GOOGL

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