François Rochon

Alphabet's products (search, YouTube) are free to users, creating an unshakable moat, and it is investing ~$180B in capex (2026) defensively to protect its core business from AI disruption. The company generates sufficient cash to fund AI investments without debt, and its Gemini AI has countered competitive threats; the advertising model remains highly profitable. LONG due to durable competitive advantages, defensive AI investment strategy, and ability to maintain dominance in a changing landscape. AI could erode search margins more than expected, or massive capex could yield low returns.

LVMH's luxury brands (Louis Vuitton, Tiffany, Sephora) remain powerful, and current earnings weakness is cyclical, not structural. Earnings could grow 60-70% over five years (~11% annual growth plus ~2% dividend), driven by brand strength and long-term demand growth in China as wealth rises. LONG because the brand moats are intact, the valuation is reasonable after a downturn, and the company is well-positioned for cyclical recovery. Prolonged luxury downturn, especially in China, or secular decline in spirits consumption.

Meta has successfully used AI to improve ad targeting, driving ~20% revenue growth at scale, and its platforms (Facebook, Instagram) are free, creating a powerful network-effect moat. AI investments have been offensive, enhancing ad effectiveness and helping overcome Apple's privacy changes; capex is funded internally and has shown clear ROI. LONG because of superior execution in monetizing AI, sustained growth, and a resilient business model. Regulatory pressures, or AI advancements by competitors could reduce its edge.