IB Net Payout Yields Model

Alphabet: Hardly Matters

Alphabet is positioned for substantial hardware revenue growth.
The hardware division isn't positioned as a profit driver due to low margins.
The smart speaker business isn't materializing as a direct profit driver as consumers shy away from voice commerce purchases.
The stock remains cheap based on an enterprise value, trading at only 13.4x forward EPS estimates.
As other tech giants make the move to high-margin services, Alphabet(GOOGGOOGL) continues making the odd shift into hardware. A big part of the move is to lock consumers into their services and advertising revenue streams. The stock remains incredibly cheap back below $1,000 as highlighted in my previous research, but the push into hardware isn't likely to contribute to this valuation.
Read the full article on Seeking Alpha. 

Disclosure: Long AAPL. Please review the disclaimer page for more details. 


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