The Motley Foolยท2025-05-14 07:11Core Viewpoint - Alphabet, the parent company of Google, is facing significant challenges that have led to a 17% decline in its stock this year, contrasting with the S&P 500's slight dip of 1% [1][2] Group 1: Alphabet's Challenges - The weak macro environment is negatively impacting Alphabet's ad sales, while competition from OpenAI's ChatGPT and other generative AI platforms is intensifying [2] - Regulatory pressures from the U.S. Department of Justice are pushing Alphabet to sell Chrome and share its valuable search data with competitors [2] - Analysts predict that Alphabet's revenue and earnings will grow by 11% and 19% respectively by 2025, but the company risks becoming a slow-growth stock similar to IBM [4] Group 2: Microsoft - Microsoft has successfully transformed its business model under CEO Satya Nadella, adopting a "mobile first, cloud first" strategy since 2014, which has reduced its reliance on desktop applications [6] - From fiscal 2014 to fiscal 2024, Microsoft's revenue grew at a compound annual growth rate (CAGR) of 11%, while earnings per share (EPS) rose at a CAGR of 16%, with the stock increasing nearly 840% over the past decade [8] - Analysts expect Microsoft's revenue and EPS to grow at a CAGR of 14% and 15% respectively from fiscal 2024 to fiscal 2027, supported by its investments in OpenAI and cloud services [10] Group 3: Oracle - Oracle has also transformed into a cloud company over the past decade, replacing many on-premise applications with cloud-based services and expanding its cloud infrastructure [11] - From fiscal 2014 to fiscal 2024, Oracle's revenue and EPS grew at a CAGR of 3% and 5% respectively, while the company repatriated overseas cash and bought back 35% of its shares [12] - Analysts project Oracle's revenue and EPS to rise at a CAGR of 13% and 19% respectively from fiscal 2024 to fiscal 2027, driven by growth in the AI market [13]