Given the pressure big tech is getting lately from antitrust regulators, I decided to share my sum-of-parts analysis on the example of Google and what shareholders could expect in the event of a Google business breakup.
Interesting report. But I wonder if using a multiple ratio to just a revenue for Cloud instead of potential net income is right. I suppose its just early stages, but more detailed analysis would have been appreciated
Yeah, the result of the cloud multiple has a more detail and an in-depth model behind it, but I didn't want to extend the length of this article with it as it is already quite long. I will keep in mind to share a separate article about cloud valuations in the future. Thanks for the comment.
Very interesting content, Richard! I didn’t know DeepMind in such depth before.
Great take on Google Search facing the innovator's dilemma.
So far, the e-commerce search segment remains stable, but there are also clouds on the horizon.
The rise of AI agents that make transactions and buy for us could jeopardize this segment as well.
Google had everything lined up to lead the charge in LLMs (researchers, compute, capital, Transformer paper, data, etc.)
Nevertheless, they were slow to react.
Will the rigidity and bureaucracy of large organizations hinder one of the most value-creating companies in history?
I'm happy to watch.
Interesting report. But I wonder if using a multiple ratio to just a revenue for Cloud instead of potential net income is right. I suppose its just early stages, but more detailed analysis would have been appreciated
Yeah, the result of the cloud multiple has a more detail and an in-depth model behind it, but I didn't want to extend the length of this article with it as it is already quite long. I will keep in mind to share a separate article about cloud valuations in the future. Thanks for the comment.
I'm new to the industry, your input is greatly appreciated.
Great post!
Thank you!
It's likely that Google Cloud, YouTube, Maps are each $100B business by end of 2030. Don't believe enough attention paid to the latter.