If I was going to do a breakup analysis on Alphabet lines, how should I separate/divide that ?

If you were to conduct a breakup analysis on Alphabet Inc., it would be beneficial to separate the valuation into distinct segments that reflect the company's business lines and growth potential. Here's a suggested division:

1. Search and Advertising: This segment includes Google's core advertising business, which generates the majority of the company's revenue. It would be appropriate to value this segment based on its dominance in the search engine market and the ongoing monetization of user data for targeted advertising.
2. YouTube and Online Entertainment: Alphabet's YouTube platform is a significant contributor to the company's growth, particularly in the area of long-form content and social media. This segment should be valued for its user engagement, ad revenue, and potential for expansion into new content formats and markets.
3. Cloud Computing and Software: Google Cloud Platform (GCP) is a key growth area for Alphabet, competing with industry leaders like Amazon Web Services (AWS) and Microsoft Azure. This segment should be valued for its scalability, technological capabilities, and potential to capture a larger share of the enterprise software market.
4. Hardware and Devices: The hardware segment includes Google's line of consumer devices, such as the Chromebook and Nest smart home products. This segment should be valued for its innovation, user experience, and potential to disrupt traditional markets like personal computing and home automation.
5. Autonomous Vehicles and Other Bets: Waymo, Alphabet's self-driving car subsidiary, represents a significant investment in emerging technology. This segment should be valued for its progress in scaling operations, mainstream acceptance of robotaxis, and potential to transform urban transportation. However, it's important to consider the uncertain unit economics and the ongoing antitrust lawsuit against Alphabet when valuing this segment.
6. Ventures and Investments: Alphabet's Other Bets segment, which includes investments in startups and ventures, should be valued based on the potential returns from these investments, as well as the strategic value they may bring to the larger Alphabet ecosystem.

By separating Alphabet's valuation in this manner, you can assess the company's performance and growth potential across its various business lines, allowing for a more comprehensive understanding of its financial health and future prospects.