Tim Seymour: Google's Attractive Valuation and International Investing Opportunities

Google's Valuation and Growth Potential

• 💡 Google's current valuation is considered attractive relative to other growth tech companies, with a low EVA multiple of 10.5x and a PEG ratio slightly over one.
• 📌 The company's sentiment is poor, which Seymour believes presents an opportunity for investors.
• 🚀 YouTube's consumption growth is outperforming Netflix and is not fully priced into Google's valuation, representing an underappreciated asset.
• 🧩 The sum of Google's parts, including its high-margin cloud business, makes it a compelling investment, especially when compared to Amazon.

Market Dynamics and Other Tech Stocks

• ⚠️ While Netflix and Tesla had notable earnings releases, elements of their stories are positive for Google.
• 🤖 The value in Tesla is increasingly seen as being in robo taxi rather than its auto hardware, a point that indirectly supports Google's diversified business model.
• 📈 The market may be pricing in lower equity growth and multiples for the S&P 500 due to potential recessionary pressures.

International Trade and Investment

• 🌍 Seymour advocates for international trade and investment, particularly in Europe.
• 💰 He believes the currency backdrop and EPS revisions favor Europe over the US, with valuations remaining cheaper.
• 📈 Fund flows are expected to favor international investing, potentially putting upward pressure on markets like the DAX, which has significantly outperformed the US.
• 📊 Despite short-term market movements, the multi-year underperformance of international markets is not something to fade, but rather an opportunity to pick spots for entry.