How Google Cloud brings ‘durability’ to the company

00:00 Josh

Dan, how about Google Cloud? Revenue 17.66 billion. Uh, that looks better than consensus. How do you see, what what are the trends in that business, Dan, in the year ahead?

00:08 Dan

Josh, I think the Google Cloud opportunity is is uh tremendous over the next few years. When we speak to customers, they get a lot of value from the Google offerings in areas like analytics as as one example. And so, uh this opportunity remains incredibly early. The company has been building it under Thomas Kurian and the leadership team. Uh it’s ramping, margins have been improving in the last few years. And so I look at this opportunity and see a a a um a $100 billion dollar revenue business uh over time. And I think the the story here when you take the cloud and you take YouTube and you take search, it’s this broadening of the growth drivers. And I think the cloud opportunity provides a a level of durability to the overall company which uh which which is I think important from an investment perspective.

01:03 Josh

Ivan, a lot of investors pile into Google because they see this as a company with the full stack. I mean, they got they got the chips, they got the cloud business Dan was just talking about. They got the massive distribution. Does Google almost sort of stand apart in that?

01:17 Ivan

Absolutely. I think they really out of the mega caps, they’re probably the best positioned one because they have the long-term moat that’s backing up a lot of their businesses. So, I would say absolutely they they stand out on on the full stack between the chips and the fact that they can easily monetize it them even for their own use cases. I think that sets them apart and they’re able to basically offer these services for free where everybody else has to offer ads and uh and and and other stuff into their products.