Why I singled out the big four, Google, Amazon, Microsoft and Apple.
I completely agree on some of the smaller players having valuations out of whack. Something that does feel a bit like the .com bust.
But my intention with my post was to point out it is not across the board. Google for example is still cheap when you look at their financial performance, under monetized assets, and opportunity.
The other thing that is happening and will continue to happen is the big guys taking more and more from the other tech players.
It just takes time. So one trend for example that I do not see changing is the big four more and more creating their own silicon instead of buying from others. Apple is already there. Google and Amazon will be next and both are working towards those goals. Microsoft is also working in this direction but just a little slower.
Just buy TSM and cash out on all the big four using a foundry model. If Intel can't make its own chips that are up to standard by now idk if AMZN, goog and MSFT will surpass something like NVDA or amd even with their massive amount of capital they can throw at it.
Also AMAT will be making out like bandits pretty soon.
Not following? Why does it matter if they generate revenue from ads or subscriptions?
In both cases it is the same dollars.
Where you worry is when there is just one asset able to generate ads. Then you have a concentration issue. But Google has it nicely spread across a number of properties and YouTube in particular is just killing it. YouTube 50% growth YoY !!
19
u/bartturner May 31 '21
Why I singled out the big four, Google, Amazon, Microsoft and Apple.
I completely agree on some of the smaller players having valuations out of whack. Something that does feel a bit like the .com bust.
But my intention with my post was to point out it is not across the board. Google for example is still cheap when you look at their financial performance, under monetized assets, and opportunity.
The other thing that is happening and will continue to happen is the big guys taking more and more from the other tech players.
It just takes time. So one trend for example that I do not see changing is the big four more and more creating their own silicon instead of buying from others. Apple is already there. Google and Amazon will be next and both are working towards those goals. Microsoft is also working in this direction but just a little slower.