Been adding to $GOOGL and $AVGO on this pullback. Here’s why: $GOOGL is down ~18% off its highs. Q2 revenue grew 24% y/y, cloud grew 82% to $24.8b, and the cloud backlog hit $514b. It’s trading under 17x forward earnings — cheaper than $MSFT and $META. The market is pricing in capex fear, not the growth already showing up. $AVGO is down ~25% off its ATH. The same week, AI semiconductor revenue grew 221% y/y and management guided for that segment to double again by 2027. The stock sold off right after arguably its best quarter. Both dips have the same shape: strong numbers, but the market got spooked by the size of the AI spend. That gap between the fear and the actual print is usually the opportunity. Not always, but usually.
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Brett @birdmanbrett · 9d
You failed to mention that Google’s earnings were inflated due to the appreciation of their investments not due to their actual earnings.
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