GOOGL is a strong long-term buy; its $500B backlog and infrastructure spending support future growth against short-term market concerns.

joining us today with the latest sentiment data for Alphabet Google. And Alphabet Google's one of the winners in the market today, but walk us through your latest sentiment data on a headline level, Andy.

Yeah, I think Google's one of the winners today and they're the one of the winners long term and probably a winner forever because this is a company that's executed against these type of opportunities over and over again for decades in a very strong way.

And so when we look at, you know, what Google's doing in terms of data center systems, this is a category that's going to grow uh significantly. It's already growing very fast, but from uh you know half a trillion dollar to $700 billion and even beyond getting to you know probably a trillion dollar within the next few years.

So what Google's doing is investing in that and Wall Street has punished Google for some of its capex spend. Uh we think that this gives investors a unique opportunity to buy one of the best companies in the world that is positioning itself strongly for future growth.

Um you know the stock down uh 10 to 15% off of highs. They're spending a lot of money because they have very good reasons to do so. you know, when you look at Google's backlog of uh, you know, future revenue that they've already sold that they can't fulfill right now, it's 500 uh it's $500 billion.

And that is more in the backlog than they've received in the prior 12 months. So they they're set up to more than double um their uh their cloud infrastructure revenues.

Uh they're spending into it. I don't know anyone in the world that would say, you know, this is a bad idea to spend $200 billion for a $500 billion backlog except for uh, you know, some of the short-sighted type of traders on Wall Street who are looking at cash flows over the next two to four quarters.

So, I I think for long-term investors, the story of the AI buildout should be one that you think of as just getting started, just ramping up. And Google is in perfect position to take advantage of this because of their history of strong execution against opportunities like this plus their commitment to ignoring you know short-term concerns of Wall Street and looking at the longer long-term uh opportunities that are in front of them.

Uh this is a a really unique setup we feel like and a very bullish one.

Now, your demand on your consumer demand growth shows absolutely no drop off. Yet there you see the divergence in the price of the stock and how it struggled and this strange almost almost uh incredible narrative about spending and capex spending and how it's kind of taken over some of the narrative when if you take a step back and look at it, these are really smart people who are deciding to spend and invest their money and you got to think it's going to pay off.

It may not pay off in a perfect amount, but it's certainly going to pay off, Andy.

Yeah, I I I think it is um it's clear to us that it is, you know, I think it's clear to Google Alphabet executives as well. You know, when they talk about their customers on the cloud side are spending at 50% above their committed levels and are telling Google Alphabet, we can't get enough.

We've got now we've got a backlog uh you know of of a half a trillion dollars of revenue is what Google's telling the street.

There's the idea that this is slowing down rather than speeding up just flies in the face of all of the data that we are seeing. all of the anecdotes that I get from friends who are in the metalwork business and saying, you know, they're getting contracts from Google, Meta, uh, Alpha, Alphabet, uh, Microsoft for hundreds of millions of dollars just for exhaust pipes to to go off of the generators that they're planning to build over the next 3 to 5 years.

>> Yeah, it's the growth is coming from Gemini. Uh, and you know, I think Gemini has fallen behind in terms of just the the amount that people talk about these different platforms, but you know, when you really get down into it, Gemini has a phenomenal product um that just hasn't penetrated the consciousness claent right now.

But to bet against Google Alphabet at this point is like betting against them, you know, in in 2000 2001 uh when search and advertising search was just getting started. I think it's a huge mistake.

And so uh Gemini is starting to take off. The data center uh side of the business in terms of uh consumer or business demand is taking off and really carrying things. I think Google's falling a little bit behind.

Microsoft Azure is you know in our data is pacing at the highest level but uh Google's investments into or Alphabet's investments into infrastructure build out are going to help uh close that gap and they're they're going to be one of the leaders in this and there's going to be multiple winners come out of this and I I strongly expect that Alphabet will be one of those big winners.