Yahoo Financeยท2025-11-03 11:00Core Viewpoint - Investors are positioning their portfolios for potential opportunities in 2026, with concerns about a bubble in the AI sector, particularly among companies providing computing equipment to firms like OpenAI that lack cash flow. However, companies like Alphabet, Amazon, and Meta Platforms are expected to perform well [1]. Group 1: Alphabet - Alphabet is primarily an advertising business, with approximately 75% of its revenue derived from advertising across its platforms [4]. - The Google Search engine has transitioned from a perceived threat of obsolescence to a recognized leader in the market, successfully integrating AI features that enhance user experience without overwhelming them [5][6]. - Recent legal outcomes have favored Alphabet, allowing it to retain its Google Chrome browser with minor concessions, positioning the company as a leader in AI within a few months [7]. Group 2: Amazon - While Amazon is widely recognized for its online shopping platform, its fastest-growing segments are advertising services and Amazon Web Services (AWS), which significantly contribute to its profit margins [10]. Group 3: Meta Platforms - Meta Platforms is anticipated to potentially launch a new product that could significantly increase its revenue, indicating strong future growth prospects [9].