Gene Munster's 6 Takeaways From Alphabet's Q3 - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

At face value, Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) reported an in-line third quarter Thursday afternoon, but nervous investors were expecting more from the tech giant, according to Loup Ventures managing partner Gene Munster.

The Analyst

The research analyst-turned-venture capitalist commented on Alphabet's earnings in a Friday blog post.

The Thesis

Munster and Loup Ventures associate Will Thompson highlighted six takeaways from Alphabet's earnings report:

Management's focus on the evolution of search suggests it will evolve to become more visual with a greater degree of artificial intelligence technology.
Alphabet's management focused a lot on its hardware products, which implies it is likely mimicking certain aspects of Apple Inc. (NASDAQ:AAPL)'s integrated hardware and software approach.
Waymo's evolution in the quarter is still in the early stages, although it could become the third-largest business in Alphabet's portfolio behind search and YouTube, but ahead of Cloud.
The earnings report and conference call was void of commentary and questions related to privacy issues, especially to its privacy strategy.
Also absent was a deep dive into the requirement to charge for Android use in the European Union. This could add 1 percent to Google's revenue in 2019 and stems from an earlier ruling by the European Commission.
Artificial intelligence, machine learning and other similar buzz words were mentioned by management just 25 times during the conference call. This marks a decrease from last quarter's 38 mentions, although in-line with a two-year average of 25.

Price Action

Alphabet shares were down 2.91 percent at $1,071.44 at the time of publication Friday.

Gene Munster Breaks Down Alphabet's Overlooked Businesses

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