EFTA02623745.pdf

From: Paul Barrett < > Sent: Tuesday, September 11, 2018 9:47 PM To: Jeffrey E. Cc: Richard Kahn Subject: GOOG and MSFT Jeffrey 1. We own $3.5MM of GOOG at an average price of $1078. Stock is at $1177=— down 7% from August 30th. I think we should top up to $=MM. • YouTube The Nielsen DCR data (Digital Content Ratings)=shows an ongoing shift in favour of Google sites. Google accounts for 33%=f all time spent on digital media and of all digital consumption in the U.=. YouTube accounts for 18% of all time spent. Google seems to have gained some 500bps of share over the last=year and Facebook has lost 300bps. YouTube's growth and Facebook's decline means that more time=is now spent on YouTube alone compared to all of Facebook properties combi=ed (Facebook, Instagram Messenger, WhatsApp). Most of the street is overweight with -$125 px targets=which I don't love as it is the consensus view however I still think=the Azure story is compelling • Lastly he said the 100% tax deductibility of capex is =esulting in a significant increase in IT capex vs plant/factory spending Pa=l =/p> Paul Barrett Alpha Group Capital LLC 142 W 57th Street, 11th Floor,=New York, NY 1O019 1 EFTA_R1_01833436 EFTA02623745 2 EFTA_R1_01833437 EFTA02623746