Hi YXI friends,

GOOGL printed a very nice set of results last night, pushing a market-open pop of 6% this morning.

Given the AI boom has run for some time, the main question now is if we are close to the cycle peak. Is GOOGL getting expensive at this point, or are there a lot of miles left in the tank?

We will tackle this question through a detailed combination of fundamental analysis, valuation modelling, and technical analysis.

Let’s dive in!

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. Alphabet Is Primarily About Search

In Q3 2024, Google Search was still the dominant business segment, taking 56% of the revenue share. However, its share is coming down over time (-1% from Q2) as Google Subscriptions et al. and Google Cloud expand their shares (both +1% from Q2).

2. Revenue Accelerated In Q3

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