I have previously held an investment in Alphabet, having sold (rather prematurely) earlier this year due long term economic concerns. Most people are familiar with their consumer facing products and the enormous economic rents they earn from their digital advertising business. Fewer people are aware of how the advertising stack drives unusually high levels of monetisation across Alphabet’s properties.
The complexity of Alphabet’s operations was also a cause for concern with me. As you’ll learn there are a number of moving pieces here, and Alphabet intentionally obfuscates many parts of it’s operations. Lack of transparency across the stack puts advertisers at a disadvantage, and keeps many of their less savoury practices out of sight, out of mind for the regulators.
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