Deep Dive: Gianni Di Mattia Discusses Alphabet Stock (Google)
Today we welcomed first time guest to the show Gianni Di Mattia. Gianni is an individual investor that likes to make concentrated bets on companies. Right now, he is heavily invested in Alphabet stock, and we got to talk to him for an hour about why he made this decision. Here are some questions we asked him about the company:
What was your thesis behind investing in Google? Why Google over Facebook?
Thoughts on YouTube. How important is it to the company? How big do you think this business can get?
GCP discussion. Can margins flip to positive and get to AWS’s level sometime in the near future? How do you value this part of the business?
Other Bets. Any value here? Or just a drag on profits? Do you think the cash burn is worth it in the long run?
Valuation. We are currently at an EV of ~$1.8 trillion. What do you think needs to happen for this to be a good investment over the next decade?
The mobile app store business is under intense political pressure worldwide. Do you think this poses a threat to Android’s profit potential?
What is the most underrated part of Alphabet/Google right now?
How fast do you think the core Search/Maps/ads business grow over the next decade, since it is already so immense?
What would cause you to sell?
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Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.