Google’s parent company Alphabet just crossed a $4 trillion market cap.
Some say it’s justified given their dominance in AI, ads and cloud, while others think it’s stretched and risky. Personally, I feel it’s on the higher side valuation-wise, but their AI and cloud growth could still justify a premium if they keep executing well.
What do you all think? Would love to hear your takes on this.
I think the valuation feels stretched only if you look at them as an ‘Ad Company.’ The market is re-rating them as an AI Infrastructure utility. 
The news yesterday about Apple using Gemini for the next-gen Siri is the smoking gun. Google effectively just outsourced their consumer AI distribution to 2 billion iPhones without having to sell a single device.
If they are the ‘default AI’ for both Android and iOS, $4T might actually be justified because they own the distribution layer of the entire internet… again.
Agree, If Google becomes the default AI across both Android and iOS, they could control AI distribution in a way that goes far beyond advertising.
The Apple-Gemini deal is a big win, putting Google’s AI on billions of devices without having to sell the hardware. If they solidify this position, the $4T valuation could be justified as they essentially control the AI infrastructure for the entire internet.
Agreed that real power is in distribution. If Google’s AI ends up being the default on both Android and iOS, it’s a big deal.