This write-up will not focus on boring things like current earnings. Rather, I wanted to lay out a few of my own thoughts on what the future might bring. 1. Search (obviously). Regardless of what would-be competitors or the DoJ does in the years to come, Google Search isn't just dominant, it's practically invincible. In my opinion, the reason is not inertia from a massive, dominant user base, but the superb, thorough quality of the results and the way Google Search is seamlessly integrated with Google Maps and YouTube. Google's holistic search experience, supplemented by Google's unparalleled mapping tech and video platform, is something no competitor can touch. There will almost certainly be both a paid Premium and free, ad-supported version of Search (very similar to YouTube Premium) in the near future, and Google's ability to monetize its A.I. capabilities is likely unrivaled. Many will disagree on this. I don't really care. I am confident Google Search will continue to grow as searchable data itself continues to be created at mind-blowing rates. 2. Isomorphic Labs. In May, Google's DeepMind and Isomorphic Labs divisions, both founded by A.I. pioneer Demis Hassabis, introduced AlphaFold 3, a groundbreaking artificial intelligence system capable of predicting the 3D structures of proteins with remarkable accuracy. This breakthrough has significant implications for drug discovery and development, as understanding protein structures is crucial for designing effective therapeutics. Alphabet, through its Isomorphic Labs, is partnering with pharmaceutical companies to leverage AlphaFold 3's capabilities. By providing access to this advanced platform, Google is enabling these companies to accelerate their drug discovery processes, identify new therapeutic targets, and optimize existing drugs. This collaboration not only has the potential to generate substantial revenue for Google through licensing agreements and partnerships, but also promises to revolutionize the pharmaceutical industry by expediting the development of life-saving medications with fewer side effects through more efficient clinical trials. From a financial perspective, the potential to revolutionize a ~$1.6 trillion revenue industry appears real, yet remains out of the mainstream understanding of Alphabet. Mechanically, Isomorphic refers to the new AlphaFold Server as "the most accurate tool in the world for predicting how proteins interact with other molecules throughout the cell." Google DeepMind and Isomorphic are offering this platform to scientists for free, but only for non-commercial research. Importantly, the company is commercializing its intellectual property, and has begun entering initial pharmaceutical partnerships, including with Eli Lilly and Novartis. These two initial deals alone have potential value of nearly $3 billion to Isomorphic, before any royalties that may result from future drug sales. To illustrate how large royalties could become, its partnership with Lilly calls for tiered royalties up to "low double digits on net sales." With real growth plus inflation, it is easy to see pharma becoming a $3-5 trillion revenue industry in the not-so-distant future. As Hassabis said when asked about the potential revenue stream, "If you ask me the number one thing A.I. could do for humanity, it would be to solve hundreds of terrible diseases. You know, I can't imagine a better use case for A.I.… But I also think if you could revolutionize the drug discovery process, make it 10x faster, more efficient, and more likely to pass through the clinical trials because you can predict the properties better, that has to be of an enormous commercial value, too. So I hope to do both with Isomorphic, build a multi-hundred billion dollar business, and I think it has that potential as well as to be incredibly beneficial for society and humanity." I pay close attention to executives' body language as they speak, and my read here is that Hassabis is doing his best to downplay his excitement about a business with seemingly monopoly-like characteristics and uncapped potential. 3. Android & Chrome. I've discussed this in the past, and it could be that a spin of Android and Chrome (and perhaps the Play Store) is conceivably done offensively and defensively by Alphabet. There are now over 3 billion Android devices currently in use (50%+ more than in my 2019 write-up), and over 1.5 billion Android units sold annually. Right now, Android is free to install, a strategic move to dominate the market. But what if Alphabet decided to charge for them? It's not just a hypothetical scenario; Sundar directly hinted at it in the past ("So far, the Android business model has meant that we haven't had to charge phone makers for our technology, or depend on a tightly controlled distribution model.") (link). It is estimated that Microsoft receives $25-50 in license fee for each new Windows device that OEMs sell. What if Android received $10, $20 or $30, depending on the price of the device? The offsetting costs would be minimal, and the cash flow margins would be enormous (80%+?). I suspect this would be done in conjunction with a spin-off or a regulatory settlement, but either way it could unlock hundreds of billions of dollars of hidden value. 4. YouTube. YouTube is not just the undisputed leader in online video, YouTube *IS* online video, benefiting from a massive global audience and a powerful creator ecosystem with unrivaled network effects. Meta, TikTok and X host clips with little or no enduring value, while YouTube is home to virtually *ALL* content of lasting importance. Its expansion into new areas like subscription services, live streaming, and short-form video, combined with its dominance in mobile video consumption, suggests that YouTube will easily be a standalone trillion-plus-dollar business reflecting its near monopoly in the entertainment and media industry. 5. Waymo. With apologies to Tesla FSD fans (and I am an admirer of all things Tesla, and an owner myself), Waymo is the frontrunner in autonomous driving technology, with the potential to revolutionize transportation and logistics. I have taken numerous rides myself in Waymo, and it is mind-blowing. As the technology matures and regulatory frameworks evolve, Waymo's first-mover advantage and vast trove of real-world driving data could result in a trillion-dollar valuation driven by ride-hailing services, autonomous trucking, and licensing opportunities. 6. DeepMind/AI (ex. Waymo and Isomorphic). Google DeepMind is a world leader in artificial general intelligence (AGI) research. While the practical, revenue-generating application of DeepMind is still developing, true AGI would be a transformative technology with implications for every industry and aspect of human life. It is challenging to value a hypothetical breakthrough, but it is easy to see a world where AGI creates multi-trillion-dollar markets. I believe it is likely there is room for several large winners, particularly those companies with the greatest access to research talent and compute infrastructure. 7. Maps. Maps is a ubiquitous platform - regardless of mobile operating system - with unparalleled global coverage and a massive user base, serving as an essential application for navigation, local discovery, and location-based services. By integrating new features like augmented reality, 3D modeling, and enhanced business listings, Maps can further monetize its vast user base, unlocking significant value in areas like local commerce and advertising, establishing a pathway to a trillion-dollar valuation. In my view, Google Maps is not a commodity, it is the gold standard that will likely enjoy strong network effect benefits for many years to come. 8. Workspace/Education: Google Workspace has become a dominant force in enterprise collaboration, particularly in the education sector. The seamless integration of tools like Docs, Sheets, Slides and Meet, coupled with the growing demand for remote work and online learning solutions, positions Workspace for sustained growth and a potential trillion-dollar valuation driven by enterprise subscriptions and educational partnerships. 9. Quantum/Chips: Impossible to value, but the opportunity appears enormous and GOOG is extremely well positioned here. — In sum, I think Alphabet is executing at a high level across the board and the current share price reflects a deeply pessimistic view of the future, while the potential is there for investors to see substantial future returns. Best not to overthink it or watch too many podcasts with fund managers patting themselves on the back while trying to sound smarter than you. Disclaimer: The author of this idea presently has a long position in securities of this issuer and may trade in and out of these positions without notice. The data contained herein are prepared by the author from publicly available sources and the author's research, personal opinions and estimates. No representation or warranty is made as to the accuracy of the statements, data or opinions contained herein - it could all be wrong. Please do your own research. I do not hold a position with the issuer such as employment, directorship, or consultancy. I and/or others I advise hold a material investment in the issuer's securities. Catalyst Time, spinoffs, worries fading away.