In today’s episode, Shawn O’Malley (@Shawn_OMalley_) breaks down Alphabet — the parent company of Google, which is one of the most valuable companies in the world and probably an important part of your everyday life. Shawn explores how Google got its start, how Alphabet makes money from seemingly-free services like Gmail, Google Maps, and Google Earth, and what to make of how AI and regulatory threats could reshape Alphabet’s business model.

Shawn paints a high-level picture of the most important things to understand about this incredible business and then goes through his process for valuing each individual business unit at Alphabet. You’ll learn how Alphabet’s different business units are structured, how they make money, and how Shawn assembles a “sum-of-the-parts valuation” for the company, plus so much more!

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IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

05:39 - Which subsidiaries make up the Alphabet conglomerate

07:58 - What to make of Alphabet’s “Moonshot Bets” division

10:33 - How to factor in Waymo and other speculative technologies into the company’s valuation

23:58 - How AI is changing search 

29:22 - In what ways Alphabet earns different forms of advertising revenue

31:33 - Why YouTube is arguably the most valuable streaming platform in the world

39:37 - Why regulatory concerns aren’t as much of a worry as you might think

45:42 - Mind-blowing stats about just how large and influential Alphabet is

48:16 - How to put together a sum-of-the-parts valuation for Alphabet

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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