Market Mondays Episode Summary Title: Is Google Falling Behind? The Truth About the ‘Magnificent 7’ Shake-Up! Release Date: March 12, 2025 Host/Author: EYL Network with Stock Market Expert Ian Dunlap

1. Introduction and EYLU University Updates

The episode kicks off with Ian announcing significant updates to Earn Your Leisure University (EYLU). He emphasizes the relaunch and revamp aimed at enhancing the educational experience for members.

• Ian (00:00): “Earners. What's going on? Listen, EYLU is relaunching, revamping, retooling. That's right. We're creating a new educational experience that's more expansive.”

• Troy (00:09): Details the existing offerings and new additions, including:

  • Monthly financial planning calls.
  • Book club and real estate calls.
  • Access to "Home Buying Blueprint" volumes.
  • Introduction of 27 local chapters across the U.S.
  • Live interactive teaching and 15 new curriculums.

Ian directs listeners to visit eyluniversity.com for more information (00:40).

2. Spotlight on Google’s Market Performance

Transitioning from EYLU updates, the hosts delve into Google's recent stock performance and its standing among the "Magnificent 7" (Mag7) tech giants.

• Troy (00:54): Raises the critical question, “Is it time to start buying Google?” pointing out that Google experienced a 16% drop in February, marking its worst month in nearly three years, making it the cheapest among the Mag7.

3. Analyzing Google's Decline

MG offers a strong opinion on Google's future in the Mag7, suggesting its removal.

• MG (01:10): “Google needs to be out of the Max 7. I want to be. Google needs to be out of the max.”

He criticizes Google's inability to keep up with competitors like Amazon and Microsoft, particularly in innovative areas like quantum computing and AI chips.

• MG (01:19): “Do not put a McDonald's. I don't care. Google. Where's the demonstration of the chip?”

4. Reasons Behind Google’s Struggles

Ian and MG discuss multiple factors contributing to Google's downturn:

a. Heavy Investment in AI with Uncertain Returns

• Ian (02:26): Highlights Google's commitment to AI with plans to spend $75 billion but questions the immediate returns on such massive investments.

b. Decline in Cloud Computing Sector

• Ian (02:36): Notes a reduction in cloud computing from 35% to 30% last quarter, signaling a pullback that concerns investors.

c. Competitive Pressure from Microsoft and Amazon

• MG (06:29): Points out that while Google was once a leader, competitors have surpassed it in areas like AI.

d. Talent Retention and Cultural Issues

• Ian (05:41): “It's a talent retention issue.”
• MG (05:45): Emphasizes the need for Google to fix its culture to retain top talent.

5. Comparisons with Other Mag7 Companies

The discussion extends to how other Mag7 members are faring in comparison to Google.

• MG (03:38): Questions the inclusion of Tesla in the Mag7, suggesting it alongside Google should be removed.

• Ian (07:25): Acknowledges Google's superior product quality but notes that Apple’s brand dominance overshadows it.

• MG (07:59): Criticizes Google's lack of innovative products in the last decade, unlike Apple, Microsoft, and Meta.

6. The Future of Google's Position in Mag7

Ian and MG deliberate on whether Google can recover its standing.

• MG (08:11): “Artificial intelligence is there. It was theirs 10 years ago.”

• Ian (08:30): Reflects on Microsoft's strategic moves with products like Office co-pilot and ChatGPT integrations, contrasting them with Google’s stagnation.

7. Concluding Remarks

The hosts agree that Google is facing significant challenges that might warrant its removal from the Mag7. They underscore the importance of innovation, strategic investments, and cultural strength in maintaining a leading position in the tech industry.

• MG (06:47): “Microsoft, Apple, you need Google for maga, Dre. But we need another company with a G.”

• Ian (08:43): Summarizes the sentiment of potentially remembering this shake-up and its implications for the future market landscape.

Notable Quotes with Timestamps

• Ian (00:00): “Earners. What's going on? Listen, EYLU is relaunching, revamping, retooling.”

• Troy (00:54): “So Google dropped 16 in February, worst month in nearly three years at 22 times earnings. So it's now the cheapest of the mag seven. Is it time to start buying Google?”

• MG (01:10): “Google needs to be out of the Max 7. I want to be. Google needs to be out of the max.”

• Ian (02:26): “They’re going to spend 75 billion on AI. We don't know what the return on that is going to be just yet.”

• MG (05:41): “It's a talent retention issue.”

• MG (07:17): “Was their idea.”

• Ian (07:25): “When we think of phones, especially in America, it. Where is it at? It's. It's trailing the iPhone.”

• MG (08:11): “Artificial intelligence is there. It was theirs 10 years ago.”

Conclusion

In this episode of Market Mondays, Ian Dunlap and the EYL Network dissect Google's current struggles within the tech elite group, the Magnificent 7. They argue that Google's hefty investments in AI and diminishing returns in cloud computing are not yielding the expected outcomes. Additionally, cultural and talent retention issues are hindering Google's ability to innovate and compete effectively against peers like Microsoft and Apple. The hosts contemplate the potential exit of Google from the Mag7, signaling a significant shift in the tech investment landscape.

For listeners seeking comprehensive insights into stock market strategies and the evolving dynamics of major tech companies, this episode provides an in-depth analysis of one of today's most influential yet challenged corporations.