I put a sizable chunk of money into Alphabet (GOOGL) this morning. The chart was forming a bull flag or ascending triangle. This morning it gapped up on news with strong volume.
You’ll also notice the crossover with the MACD which is bullish.
Google is one of the cheapest of the Magnificient 7 stocks. It has a forward PE of 19 and trades at 6.49 times sales. The company has 27% profit margins and is growing at 15% a year. This gives it a PEG ratio of a little over 1 which is pretty good for a world-dominating $2 trillion company.
The stock gapped up today because GOOGL announced that they had created the coolest supercomputing thing known to man. Here is what they put on their website:
Today I’m delighted to announce Willow, our latest quantum chip. Willow has state-of-the-art performance across a number of metrics, enabling two major achievements.
- The first is that Willow can reduce errors exponentially as we scale up using more qubits. This cracks a key challenge in quantum error correction that the field has pursued for almost 30 years.
- Second, Willow performed a standard benchmark computation in under five minutes that would take one of today’s fastest supercomputers 10 septillion (that is, 1025) years — a number that vastly exceeds the age of the Universe.
The Willow chip is a major step on a journey that began over 10 years ago. When I founded Google Quantum AI in 2012, the vision was to build a useful, large-scale quantum computer that could harness quantum mechanics — the “operating system” of nature to the extent we know it today — to benefit society by advancing scientific discovery, developing helpful applications, and tackling some of society’s greatest challenges. As part of Google Research, our team has charted a long-term roadmap, and Willow moves us significantly along that path towards commercially relevant applications.
A quantum computer uses waves and particles instead of the traditional binary code. The benefit is that quantum computers can work much faster and more efficiently. The downside is that when you scale larger, that is when you add more quantum bits (qubits) it makes more errors.
Google researchers have managed to solve this problem when they went from 50 qubits in 2019 to 106 today. That said, they need to scale up to a million qubits to be a feasible AI computer.
Computer scientists believe that while this is very cool and a big step towards quantum computing as a viable thing, it won’t have any real meaning for many years and perhaps a decade.
All the best,
Christian DeHaemer
Outsider Club
Link to the blog site with Willow:
https://blog.google/technology/research/google-willow-quantum-chip/
Baby, I can’t find no job:
https://www.outsiderclub.com/unemployment-inflation/
More room to run?:
https://www.outsiderclub.com/party-like-it-is-1996/
