Is Google Falling Behind? The Truth About the ‘Magnificent 7’ Shake-Up!

Summary

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

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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.

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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.”

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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.

Transcript

[Ian]

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. Shoti tell what we got.

[Troy]

Yes, 20, 23. We got a lot in store, a lot planned for you guys. So you know that EYLU already includes monthly financial planning calls with me, book club calls with Troy, real estate calls with MG the mortgage guy, access to the home buying blueprint volume one and volume two. Part of the revamp will include 27 local chapters from across the United States. Live interactive teaching, hands on, not just pre recorded videos. Plus 15 brand new curriculums.

[Ian]

The biggest just got bigger. Head over to eyluniversity.com that's E Y L U N I V E R s I t y dot com.

[MG]

See you there.

[Troy]

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]

Google needs to be out of the Max 7. I want to be. Google needs to be out of the max. Amazon put, listen, wait, who you put?

[Ian]

Who's replacement? Why are you like, all right, go ahead, go ahead, go ahead.

[MG]

Shout out to everybody.

[Ian]

Google, Apple, Microsoft, Amazon, Meta, Nvidia, Tesla and Google. All right, you taking Google out. Who you playing?

[MG]

Anybody. We can put a slug. Do not put a McDonald's. I don't care. Google. Where's the demonstration of the chip? I haven't even seen the chip. Amazon came out with a quantum chip. How the hell did you let Microsoft and Amazon beat you to the punch of some you thought of nine years ago? One of the greatest companies ever. I know y'all gonna be like, yo, you said this. Listen, y'all do what y'all want to. Google should be out of the Max 7. Is Google magnificent anymore?

[Ian]

Yes, man.

[MG]

Open AI is eroding their main business. If it wasn't for YouTube, Google would be done.

[Ian]

It would hurt.

[MG]

It would.

[Ian]

It's still here. It's still here.

[MG]

Biden's still here. Don't mean he affected.

[Ian]

That. They. Well, why did they fall? Is the first part. And it's why you saw Microsoft pull back, right when you tell people, look, we're going to spend $100 billion next year.

[MG]

But that's not the only.

[Ian]

No, that's not the only reason. It's compound, it's compounded. So the first thing is like, yeah, they, they're going to spend 75 billion on AI. We don't know what the return on that is going to be just yet. Gemini is a good product. We can't deny that it has rated as the most efficient search. This is true. This is not theory. This is not for my opinion. This is true. No, this is true. This is true. All right, now number two, they did see a pullback in cloud computing for sure, right? So you went from 35% to 30% last quarter. Those type of. When, when investors see any type of decline in a business area that does not help a company. Right? So if we're saying like, hey, you know that Chinese news thing that was, that was disruptive, can we be more efficient with our spending? Does it really cost as much to do the things you're saying you're doing? It hurts. It hurts the entire space. It hurts the entire space. So I could understand the pullback. I don't think this is a true 2 trillion dollar company, bro.

[MG]

Ladies, Google is the the man who didn't live up to should Tesla be there?

[Ian]

Wait, should Tesla be there?

[MG]

I've been saying Tesla should be out as well.

[Ian]

Also, there's a Mac 5. Fantastic 5.

[MG]

I've been saying two tech two index forever. I think it should be a core four. Okay, that's neither here nor there. Google has missed too many opportunities. OpenAI, we have to agree, is eating their lunch. Yes, there's a bunch of companies.

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[MG]

And have given better returns. I don't think they have a leadership issue. I just don't think that they're focused.

[Ian]

It's. I think it's a talent retention issue.

[MG]

Gotta fix the culture, right?

[Ian]

Because if what just what you're saying is 100% true, right? Like they were ahead of everybody, everybody by. By year, and they had the engineers to do it. And those engineers have left and gone on and created a lot of the things that we use today in terms of the word, in terms of the world of gbts. Why haven't they been able to retain that talent to create a product, right? Like that's the thing, right? Like Microsoft, they have product. Apple has product. Meta has product. YouTube is the best product, yes. But after that, it's like, search, search, bro. Shout out to my people at Google.

[MG]

Shout out to everybody at Google. I think y'all amazing. I need to fix the culture. Meta's better. Microsoft is better. Apple is better. Eli Lily is better. I'm sorry. I think they should be out of great company still. I just think they should be out of the Max 7. And the Max 7 trade over.

[Ian]

It went from Fang to Max 7.

[MG]

Y'all gotta come up with something else now. So Microsoft, Apple, you need Google for maga, Dre. But we need another company with a G. Suffer with.

[Troy]

But when you say that they don't have product, what do you mean?

[MG]

They don't have hit products that have been innovative in like, the last, I don't know, 10 years. Because they ushered like the quantum idea. All this chat GPT.

[Ian]

That's them.

[MG]

Was their idea.

[Ian]

Yeah.

[Troy]

What about the phone?

[Ian]

Is that. So.

[MG]

It'S okay, is it?

[Ian]

When we think of phones, especially in America, it. Where is it at? It's. It's trailing the iPhone.

[Troy]

Outside of America.

[Ian]

Outside of America. But as I'm saying, the brand dominance here is dwindling. And I'm not even talking from a quality standpoint because it probably not even. Probably and shout out to everybody at Google again. But the quality of the product is probably better than the iPhone, right?

[MG]

Probably.

[Ian]

Probably right. But Apple just has a brand dominance that people believe it stand by and have a retention for.

[MG]

It's been the Google picture. The natural evolution of search. They missed that old. It'd be like if we let black go colonize Africa.

[Ian]

They had it. Artificial intelligence is there. It was theirs. It was theirs 10 years ago, right? Like that's what I'm saying. So like Microsoft has had Microsoft's Office, right? And then it became co pilot. That's a product, right? Like now Chat gbt. We already know that. That is a. I mean we can stay. That's. That's a Microsoft.

[MG]

When I had him on payroll and dropped the ball, Microsoft didn't even care about AI the last five years.

[Troy]

Like so okay, so all right, this one.

[Ian]

Kick them out. We're gonna remember this what I do.

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