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Liberty

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I haven't looked at Google in a little while, but core operating income looks to be up only 7% despite big rev gains:

 

wAC6OZd.png

 

I'm sure I'm missing something though... perhaps an accounting change or a one-time change in the year ago quarter?

 

They took a charge for the EU fine.

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Anyone have any thoughts on how Google's capital allocation/return strategy will play out?  It has to be a matter of time when something substantial happens, right?  Or is all the cash reserved for fines and investments. 

 

As well, whether any meaningful buyback or dividend will impact the stock?  Asking because it seems to not be part of the conversation, and that's when something usually develops.

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Anyone have any thoughts on how Google's capital allocation/return strategy will play out?  It has to be a matter of time when something substantial happens, right?  Or is all the cash reserved for fines and investments. 

 

As well, whether any meaningful buyback or dividend will impact the stock?  Asking because it seems to not be part of the conversation, and that's when something usually develops.

 

The capital allocation seems fine to me, Using part of the $100B is not going to make a whole lot of difference for an $870B market cap company. I would rather have them buy back stock, when it becomes clearly cheap, which right now it is not.

 

They may need some to fund the ventures at some point, if they really grow into something big. Waymo example may have a huge hardware component that could require acquisition and significant Capex in several fields (lasers, sensors, optics, chips) to scale up and I could see them spending tens of billions on this alone. Sure they could spent the cash hoard on buybacks and borrow some funds later if needed,  it it’s nice to have a clean balance sheet without debt too.

 

I would rather have them concentrate on growing 25% annually for an extended period of time, thats where the value will be created. Everything else is more or less secondary.

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https://www.bloomberg.com/news/articles/2018-08-30/google-and-mastercard-cut-a-secret-ad-deal-to-track-retail-sales

 

For the past year, select Google advertisers have had access to a potent new tool to track whether the ads they ran online led to a sale at a physical store in the U.S. That insight came thanks in part to a stockpile of Mastercard transactions that Google paid for.
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VW apparently wanting to invest $13.7bn for 10% of Waymo:

 

https://www.reuters.com/article/us-volkswagen-partnerships-waymo/volkswagen-in-talks-with-waymo-about-mobility-services-partnership-manager-magazin-idUSKCN1MZ1FL

 

Volkswagen Chief Executive Herbert Diess wants to spend 12 billion euros ($13.70 billion) for a 10 percent stake in Waymo, the robotaxi company owned by Alphabet but Diess lacks the backing from the supervisory board to spend such an amount, Manager Magazin said

 

Not sure how reliable that is.

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