Alphabet reported fantastic fourth-quarter results on Wednesday, proof that its eye-popping spending on artificial intelligence is accelerating growth across all its businesses. Revenue in the fourth quarter ended Dec. 31 increased 18% to $113.83 billion, well ahead of the $111.43 billion expected, according to LSEG. Earnings per share (EPS) increased 31% year over year to $2.82, also breezing past estimates of $2.63, according to LSEG. GOOGL 1Y mountain Alphabet 1-year return Bottom line Alphabet posted be ...

Core Insights - Alphabet Inc. exceeded Wall Street expectations for its fourth quarter, but concerns over high anticipated spending on artificial intelligence infrastructure tempered market enthusiasm [1][2] Financial Performance - Alphabet reported strong performance metrics, surpassing expectations in revenue, earnings per share, and cloud revenue, yet its shares declined in after-hours trading due to sensitivity around AI spending [2] - The company projected capital expenditures for 2026 to be between $175 billion and $185 billion, which would be more than double its 2025 capex [2][3] Market Context - Alphabet's spending forecast for 2026 is significantly higher than those of its peers, indicating a reset in expectations for capital expenditures [3] - In comparison, Microsoft reported a capex of $37.5 billion for the latest period but did not provide a specific forecast for the upcoming year, while Meta expects to spend between $115 billion and $135 billion in 2026 [4] Industry Trends - The software sector has seen a 30% decline in value over the last three months, attributed to concerns that AI tools may disrupt existing software solutions, making higher spending riskier [6] - Despite the overall market hesitance, tech companies are actively investing in infrastructure to meet the growing demand for AI services [7] Cloud Business Performance - Google's cloud unit, which includes most of its AI products, experienced a backlog increase of 55% sequentially and more than double year-over-year, reaching $240 billion by the end of the fourth quarter [8] - Cloud revenue for Google saw a nearly 48% increase compared to the previous year [8]

Group 1: Company Performance - Box CEO Aaron Levie describes the current moment as the most exciting in the company's 20-year history, despite Wall Street's negative perception, with the stock down 17% in 2026 after a significant drop earlier in the year [1] - The WisdomTree Cloud Computing Fund has seen a decline of about 20% in 2026, with Box's performance reflecting broader trends in the software industry [2] Group 2: Industry Trends - The generative AI boom, initiated by OpenAI's ChatGPT, is rapidly transforming the business landscape, enabling the creation of apps and digital products in a matter of seconds or minutes [3] - Levie highlights a "cognitive dissonance" within the industry, where companies recognize the potential of AI to enhance their products while also fearing that AI could threaten their existence [3] - Levie argues that businesses prefer to invest in specialized vendors for back office software and customer relationship management systems rather than developing these capabilities in-house, which would involve additional liabilities [4]

Core Viewpoint - Ciena Corp. is set to rejoin the S&P 500 index after 17 years, indicating a significant recovery and growth in the company's market position [1][3]. Group 1: Company Overview - Ciena is a networking hardware manufacturer specializing in high-speed fiber optical networks, with a market cap that has nearly tripled in the past year [2]. - The company reported that nearly 18% of its revenue for the 2025 fiscal year came from an unnamed cloud provider, while about 11% was generated from AT&T [2]. Group 2: Market Dynamics - The inclusion of Ciena in the S&P 500 is expected to drive stock prices higher as fund managers purchase shares to align with the index [3]. - Investor interest has surged due to increased demand for data center infrastructure capable of supporting generative artificial intelligence models, which is projected to significantly contribute to Ciena's growth in 2026 [4]. Group 3: Financial Performance - Ciena anticipates a revenue growth of approximately 24% during the 2026 fiscal year, marking the fastest growth rate since 2011 [4]. - The company's stock recently closed at its highest price since 2001, reflecting strong market performance alongside other network equipment firms like Cisco [5]. Group 4: Supply Chain Considerations - The company faces challenges in securing components, particularly memory and optical parts, due to increased demand, but is actively working with key suppliers to ensure supply stability [5].

Core Viewpoint - President Trump has decided not to involve himself in the acquisition battle between Netflix and Paramount Skydance for Warner Bros. Discovery, stating that the Justice Department will handle the matter [1]. Group 1: Company Involvement - Trump has been approached by both Netflix and Paramount Skydance regarding the acquisition but has chosen to remain uninvolved [1]. - In December, Trump expressed concerns that Netflix's acquisition could pose a problem due to the significant market share it would gain if approved by regulators [2]. Group 2: Regulatory Context - The Justice Department is expected to oversee the regulatory aspects of the acquisition, indicating a formal review process for the proposed deal [1].

Group 1 - Advanced Micro Devices (AMD) experienced a significant decline of 17% following a first-quarter forecast that did not meet analysts' expectations [1] - Other technology companies such as Broadcom and Micron Technology also faced losses, with Broadcom down approximately 3.8% and Micron Technology dropping 9.5% [1] - The overall trend in the Asia-Pacific markets was negative, largely influenced by a tech sell-off in Wall Street [1] Group 2 - Bitcoin saw a decline of over 3%, trading just above the $73,000 level after previously falling below that mark [2]

Group 1: Market Overview - The recent volatility in the market highlights the importance of portfolio diversification, particularly as tech-only portfolios have suffered significant losses [1] - The S&P 500 and Nasdaq Composite experienced declines due to a sell-off in tech stocks, while the Dow Jones Industrial Average rose by 260 points, or 0.5% [2] Group 2: Technology Sector Performance - Advanced Micro Devices saw a sharp decline of 17% following a perceived disappointing first-quarter outlook, with other chipmakers like Broadcom and Micron Technology also experiencing losses [3] - Software stocks have faced significant selling pressure amid concerns over AI disruption, with Oracle dropping 5% and the iShares Expanded Tech-Software Sector ETF falling for the seventh consecutive session [3] Group 3: Other Industries' Performance - Companies such as Campbell's, PepsiCo, Smuckers, and Kraft Heinz have seen stock price increases despite challenges, indicating resilience in the consumer goods sector [4] - In the healthcare sector, firms like Johnson and Johnson, Merck, and Amgen have performed well and are considered valuable investments [4] Group 4: Banking and Industrial Sectors - Banks have been advancing as investors believe they will benefit from AI improving operational efficiency, alongside industrial companies like Honeywell, Dover, and Emerson Electric [5] - These firms are characterized by earnings, dividends, and stock buybacks, making them attractive compared to tech stocks [5] Group 5: Earnings Season Impact - During earnings season, companies can provide significant upside surprises, leading to positive stock performance, which aligns with traditional market behavior [6]

Core Viewpoint - Google is significantly increasing its capital expenditures for artificial intelligence, which is expected to benefit Broadcom and other companies associated with Alphabet [1][2]. Group 1: Google's Capital Expenditures - Google anticipates spending up to $185 billion on capital expenditures this year, nearly double its spending from the previous year [1]. - This increase in spending is part of a broader trend among technology companies investing in data centers focused on artificial intelligence [2]. Group 2: Broadcom's Role - Broadcom is involved in the production of Google's tensor processing units (TPUs), which are used for AI software that does not rely on standard Nvidia chips [3]. - The company is expanding its custom chip business, focusing on application-specific integrated circuits (ASICs), which may offer greater efficiency for certain AI workloads [4]. - Broadcom is also selling Google's TPU Ironwood rack systems to Anthropic, another AI lab, indicating its growing involvement in the AI sector [4]. Group 3: Market Dynamics - Custom AI chips are primarily beneficial for large, sophisticated firms known as hyperscalers, with Broadcom developing custom chips for five separate customers, referred to as "XPUs" [5]. - Major companies like Microsoft, Amazon, and Meta are also working on their own custom chips, although Broadcom has only publicly named Google and Anthropic as customers [5]. - Hyperscalers typically require partnerships with semiconductor companies like Broadcom to incorporate necessary intellectual property and facilitate chip manufacturing [6].

Core Viewpoint - E.l.f. Beauty experienced a significant increase in share price by approximately 15% following a strong earnings report and an upward revision of its fiscal year guidance [1] Financial Performance - Net sales rose by 38% to $489.5 million, up from $355 million in the same quarter last year, driven by global growth across retailers and e-commerce [1] - Adjusted net income for the quarter was reported at $74.5 million [1] - Earnings per share were $1.24 adjusted, exceeding expectations of 72 cents [4] - Revenue surpassed expectations at $490 million compared to the anticipated $460 million [4] Strategic Acquisitions - The acquisition of Hailey Bieber's skincare brand, rhode, for approximately $1 billion contributed $128 million to the net sales growth in the third quarter [2] - E.l.f. projects rhode will contribute up to $265 million in net sales for the year, an increase of $65 million from previous guidance [2] Market Position and Growth - The company gained 130 basis points in market share for its e.l.f. Cosmetics brand [3] - The launch of rhode in Sephora in the U.K. was described as record-breaking, indicating strong market reception [3] - E.l.f. raised its full-year revenue outlook by $42 million to $50 million [2]

Evan Spiegel, CEO of Snap Inc. attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, U.S., on July 9, 2025.Snap shares were up over 5 percent in after-hours trading on Wednesday after the Snapchat-parent released fourth-quarter earnings that beat on sales. The company also announced a $500 million stock repurchase program.Here is how the company did compared with Wall Street's expectations:Earnings per share: 3 cents. That figure is not co ...