I Can’t Stop Buying Alphabet Because The AI Talent Narrative is Wrong
This opinion piece argues that the bearish narrative about Alphabet losing AI talent to competitors like Anthropic and OpenAI is incorrect. The author cites strong financial results, including Q1 2026 revenue of $109.90 billion (up 21.8% YoY) and EPS of $5.11, which crushed estimates. Key evidence includes Google Cloud's 63% growth to $20.03 billion, a backlog nearly doubling to $460 billion, and Gemini processing 16 billion tokens per minute. The article highlights structural advantages like the merged Google Brain and DeepMind unit under Demis Hassabis, multi-billion-dollar retention packages, and proprietary TPU clusters. The author prefers Alphabet over Microsoft, Amazon, and Meta due to its cloud growth, advertising revenue ($77.25B), and 350 million paid subscribers. The primary risk identified is massive capital expenditure ($175-185B in 2026) causing free cash flow to drop 47% year over year.
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