Hey boys and girls - this is tom, and in this video we're talking about, google, is google still a pie at 2700 now. The reason that this is extremely relevant to my audience is because we spoke about this talk on april 12th. Three months ago, i posted on our patreon group, basically saying that this stock has a lot of upside. The price was 22.85 and i said i think it's a 2500 2600 stock.

I think it's worth looking into and since then the stock smashed through our target price and now is sitting nicely at 2700 and of course, every time that happens. I get flooded with questions well tom. Your target price has been crossed. Should we sell google, or should we hold on to it and of course i can't tell you what to do.

You are your own man or your own woman, and i am just a guy on the internet, not a financial advisor. This is just my opinion. Might be inaccurate might be wrong, might be the remix of a madman. That is why you always have to do your own research, allegedly blah, mother, effing blah and, having said that, i'll share with you my methodology, so whenever a stock pushes through my target price as originally posted on our patreon group, i do a second test.

I basically look at the company, and i try to evaluate, did something change in the last three months that would justify a higher valuation versus the valuation. I just gave we're not gon na hold on to a stock that pushes, through our target price, just because we think that somebody else will buy it at a higher price. We don't invest based on the greater full theory, and that is why, every time that happens, i post on patreon - and i let people know what i'm gon na do personally, whether i'm holding on or i'm actually cashing out and taking profits as well as my rationale. Now, with google, i decided to make a full-blown video for everybody.

It's gon na be wide open, not just for the patreon, not just for the channel members, because i think it's a cornerstone stock and i think this information should be free for all. It's just my opinion and, as always in my videos, you're gon na get the bottom line first and then the analysis later, because i will not hold you hostage. So, in my opinion, google still has more room to run in fact, significantly more room to run because of latest development. Regarding to the cloud computing and the cloud services which i'm going to talk about in this video, as well as the financials, a full dcf and the full analysis about why.

I think the target price should be raised higher. So i will be holding on to google and if you want to spend the next five minutes with me, learning why you're more than welcome to stay. But if that's all you needed it's fine, i won't be mad for you if you actually leave, but before we get started with analysis, one request: don't click, nothing, don't smash, nothing don't buy. Nothing! No! Affiliate links! No courses, no sponsorships, just give me your attention, because this is about to get interesting and the first thing i want to point your attention to is this file right here? This is a file that's available to every single channel member and the patron, where i have all my target prices and right here you can see: google apple 12.

The price was 22.85. I said it's going to be 25.50, and now we blue passed it to 2700, which means it has a six percent overvaluation, but this is a technicality. I'll show you the real price in a second, because this thing is going to go up. So, let's start with the analysis.

The first thing i want to show you is this article that was actually posted yesterday, funny enough on seeking alpha about cloud services, amazon, microsoft and google. The one thing i want you to notice here - and i kind of highlighted for myself - is the fact that google is currently at number three they're, definitely getting beat by microsoft, and amazon. Amazon have about 31 of the market, microsoft about 22 and google is lagging behind at the third place, with only 8 of the market. However, look at the growth rate, while amazon grew by 37.

Microsoft grew by 51. Google grew by 66 year-over-year, so even though they're in third place, their growth rate is actually the most impressive out of the three, but there's more. I want you to take a look at this thing. Google had 4.6 billion just in the second quarter in cloud services.

Now that's a 54 increase on the year, but first quarter they were up 46 year-over-year. So what you have here is a sleeper google is growing impressively, but they're also accelerating that growth. That means nobody is really focusing on google as far as the cloud services, and that i think, creates a massive opportunity going forward because if they keep even remotely some of these growth percentages going forward, this is a whole new revenue stream that none of the actual Existing valuations are taking into account, and now, let's take a look at the growth, and if i showed you these numbers without the name of the company, you would assume this is a startup, because this is a crazy, ass growth, 33 revenue year of the year next Year is still expected to grow above 21 ebay. The growth next year anticipated at 24.2.

I mean this is insane numbers. This is extremely high for a company of this size, and i want you to take a look at the revenues. This has nothing to do with pandemic acceleration. They literally doubled their revenues in four years, from 17 to 2021 trading, 12 months, double the revenue.

If you go back to 2014, they actually quadrupled quadrupled the revenues in seven years. That kind of growth is not something you see every day and there's a good reason. This is pretty much a crazy ass company, but wait, i think, there's more room to grow and i'll show you that in my dcf in just a second, by the way, i'm not the only one who's saying that this is steven yu from credit swiss and you Might have noticed that this ranked 25 in the nation out of 7 600 analysts - and he specifically was writing google 27 out of his last 30 projections and he's saying this company is 26.18 undervalued, but wait. I want to show you my dcf check it out.

So what you're, seeing right now on the screen is the google dcf. We have 25 annual growth for the next five years. We also have 200 billion, almost 200 billion in capex, assume 10 discount rate four percent growth rate annual and only 12 ebitda multiple. I didn't want to give it the full 25.

We gave it half just to be conservative and right now, you're going to see the target prices. 3 400 for the ebay approach. 3 100 for the perpetual approach, which means this company. According to my dcf is 22 undervalued even today, so i'm going to raise my new target price to 32.85, giving it another 22.

And if that's what you're here, for you got it and by the way the dcf model which you just saw in this video will be available to download for our patreon members and the channel members. And you can actually sign up for five dollars per month and become a channel member or a patron and support what we do here and also get that dcf as well as other perks, other dcfs and all that good stuff. As always, much appreciated huge shout out to the channel members and the patreons for supporting this channel. You guys are amazing, we'll see you guys tomorrow,.