The market reaction post-Q2 earnings demonstrated that Google's near-term headwinds had been reflected. But, Google must contend with more competition amid slowing growth in ads.

YouTube's growth slowdown could be bottoming out soon before recovering. However, Google Cloud also needs to demonstrate profitable growth to compensate for slowing growth in advertising.

We believe that the market has de-rated GOOGL, as it's unlikely to replicate its past 5Y and 10Y performance, justifying higher free cash flow yields.

Notwithstanding, GOOGL is unlikely to see much further downside and is still a solid core holding for investors.

Therefore, we reiterate our Buy rating.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • Andie8392
    ·2022-08-08
    good post.. thanks for sharing
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  • SiFu
    ·2022-08-08
    thanks for sharing
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  • naf
    ·2022-08-08
    k
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  • Loge
    ·2022-08-08
    👍🏻
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  • bulbabro
    ·2022-08-08
    thank you
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  • CapybaraNDU
    ·2022-08-08
    Nice
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  • Euggie
    ·2022-08-08
    Niceeeee
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  • Ryanccs75
    ·2022-08-08
    I see
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  • hweeeee
    ·2022-08-08
    👍🏽
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  • Xijie
    ·2022-08-08
    👍
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  • RT2022
    ·2022-08-08
    Tks
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  • ensemble
    ·2022-08-08
    agreed
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  • BryanChua17
    ·2022-08-08
    🫶🏻
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  • TaiJin
    ·2022-08-08
    [Miser]
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  • 会飞的bubz
    ·2022-08-08
    K
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  • ASHLEYLIM
    ·2022-08-08
    🤙
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  • Tiramisu2020
    ·2022-08-08
    cool
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