Google Revisited: A Permanent Stake in the Tech Giant's Future.

The author of the article has reconsidered their stance on Google (Alphabet Inc) and has decided to never sell their shares again after revisiting the company's "moat" - its competitive advantages and strengths. The author initially bought shares in the 2022 tech bear market and sold them in 2024, but has now reevaluated their position and has decided to hold onto their shares permanently.

In the ever-evolving landscape of technology and finance, it is crucial for investors to continuously reassess their positions. This article revisits the stance on Google (Alphabet Inc.) following a series of recent developments and a reevaluation of the company's competitive advantages.

Google, a holding company organized around six core areas of activities, has consistently demonstrated its ability to maintain a strong market position. Its operations span from web-based search engines (Google) and video hosting (YouTube) to home automation solutions (Nest Labs), biotechnology research (Calico), artificial intelligence (Google X), investment services (Google Ventures and Google Capital), and fiber optic internet access (Google Fiber) [1].

Despite facing antitrust suits and potential remedies, Google's stock has shown resilience. A federal judge's ruling in 2024 declared Google a monopolist in internet search, and the company is expected to appeal the decision. Potential remedies include divestiture of Chrome and forced data sharing, but analysts predict these will have a relatively small impact on Google's operations [2].

One notable development is Google's strategic investment in TeraWulf, a company transforming from crypto mining to AI infrastructure. Google's $3.7 billion AI hosting deal with TeraWulf ensures long-term AI compute capacity and positions TeraWulf as a critical player in the AI supply chain. This partnership underscores Google's commitment to maintaining its competitive edge in the AI sector [3].

The author initially bought shares in 2022 during the tech bear market and sold them in 2024. However, a reassessment of Google's "moat" — its competitive advantages and strengths — has led to a change in stance. The company's diverse business portfolio, strong market position, and strategic investments indicate a robust foundation for future growth. Therefore, the author has decided to hold onto their shares permanently.

References:

[1] https://www.marketscreener.com/news/alphabet-allegedly-used-lobbying-tactic-to-exclude-senior-executives-from-disclosures-ce7c51d9da80f326
[2] https://www.investors.com/news/technology/google-stock-wall-street-awaits-judges-ruling-on-remedies-in-search-antitrust-case/
[3] https://www.ainvest.com/news/terawulf-3-7-billion-ai-hosting-deal-google-8-stake-strategic-pivot-ai-infrastructure-supremacy-2508/