WestPark Capital analyst Curtis Shauger initiated coverage on Alphabet GOOG on Tuesday with a Buy rating and a price target of $210. Alphabet reported fourth-quarter net sales of $96.47 billion, up 11.8%, but this fell short of the consensus estimate of $96.56–$96.69 billion. GAAP EPS reached $2.15, topping the consensus of $2.12–$2.13. Also Read: Google's New AI Travel Features Could Drive Major Growth In Search Volume: Analyst Cloud revenue of $11.96 billion grew 30% but underperformed the $12.19 billion ...

If you are like me and have heavy exposure in tech stocks, then you know that the past month has been quite brutal. A heavy, steep sell-off like the one we have been experiencing in recent weeks always raises doubts. Nikolaos Sismanis holds a BSc in Banking and Finance and has over five years of experience as an equities analyst. He covers a variety of growth stocks and income stocks, including identifying those with the highest expected return potential, and a solid margin of safety. He is a contributing a ...

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Like many tech stocks, Alphabet's (GOOGL -4.83%) (GOOG -4.89%) stock pulled back in recent months. Investors still question its position in the artificial intelligence (AI) landscape, which isn't helping the company's stock. However, Alphabet continues to speed ahead with innovation, announcing its newest AI model, Gemini 2.5 Pro Experimental, only about three months after introducing Gemini 2.0. Let's look at Alphabet's latest AI model to see if it can be a catalyst for the stock moving forward. Advanced r ...

Core Viewpoint - Alphabet is positioned for long-term growth and is expected to continue outperforming the stock market due to its innovative structure and diverse business ventures [3][14][15] Financial Performance - Alphabet shares have gained 1,320% since their initial purchase price of $11.68 per share, significantly outperforming the S&P 500's 438% increase over the same period [3] - Despite market downturns, such as a 44.3% drop in 2022, the company is expected to recover and continue its growth trajectory [6][5] Business Structure and Flexibility - The diverse structure of Alphabet allows it to adapt and explore new revenue streams beyond its core operations in online search and advertising [7][9] - Potential future revenue sources include self-driving taxis, medical research, drone delivery services, and advanced AI tools [8][9] Innovation and Market Leadership - Alphabet actively leads market changes with innovations in areas like YouTube, Android, quantum computing, and generative AI [12][13] - The company embraces unconventional ideas and is willing to take risks, which is essential for fostering innovation [13][14] Long-term Outlook - Alphabet's market capitalization stands at $2 trillion, indicating a strong foundation for future growth [14] - The company is expected to outperform the broader stock market for the foreseeable future, reinforcing confidence in its long-term investment potential [15]

Settlement of Class Action Lawsuit - Google reached a preliminary settlement in a 14-year-old class action lawsuit with advertisers, agreeing to pay $100 million while denying any wrongdoing [1][2] - The lawsuit, initiated in March 2011, alleged that Google failed to provide promised discounts and charged for clicks outside targeted geographic areas [1] Legal Proceedings and Outcomes - The settlement requires judicial approval, and the lengthy legal battle was attributed to the extensive evidence gathered and mediation sessions [2] - In a separate case, a federal judge dismissed part of a lawsuit accusing Google of misleading investors about its digital advertising practices and user privacy protections, citing insufficient evidence from shareholders [3] Additional Legal Challenges - A 2023 lawsuit alleged that Google manipulated online advertising through preferential bidding and misrepresented the competitive nature of its ad market [4] - The Department of Justice is pursuing a court order to compel Google to sell its Chrome browser following a ruling that Google held an illegal search monopoly, with a hearing scheduled for April [5]

Core Viewpoint - Tencent Holding Ltd. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor affecting stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Tencent suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Earnings Estimate Revisions - Tencent is projected to earn $3.74 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 14.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Tencent has risen by 2.6% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Tencent to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9][10].

Core Viewpoint - Alphabet's stock has faced a nearly 10% decline year-to-date, reflecting broader market trends shifting away from high-growth tech stocks to safer assets [1][2] Group 1: Market Performance - Alphabet's stock price is currently $168.19, with a 52-week range between $147.21 and $207.05 [1] - The company has a dividend yield of 0.48% and a P/E ratio of 20.89, with a price target of $210.59 indicating a potential upside of 25.44% [1][9] Group 2: Competitive Landscape - Google's search business, which is crucial for its valuation, is facing competition from AI-driven platforms like OpenAI's ChatGPT and xAI's Grok, which provide synthesized answers that may reduce traditional search usage [3][5] - Despite this competition, Google maintains a dominant market share of approximately 88% in U.S. search, with search and other revenue reaching $54 billion in Q4 2024, a 12.5% increase year-over-year [4][10] Group 3: AI Initiatives - In response to AI competition, Google has launched the Gemini AI model and enhanced its search capabilities with AI Overviews, which are now active in over 100 countries [7] - CEO Sundar Pichai has stated that these AI enhancements have increased user engagement in search, with early data suggesting strong search volume where AI Overviews are implemented [8] Group 4: Financial Outlook - Alphabet's Q4 earnings report revealed a $75 billion capital spending plan for 2025, a 43% increase from 2024, aimed at bolstering its AI and cloud infrastructure [9] - Although there was a slight revenue miss in Q4 2024, Alphabet's core businesses showed resilience, with YouTube ad revenue at $10.47 billion and Google Cloud revenue growing 30% to $11.96 billion [10] - Analysts project full-year EPS growth of 14-16%, with Alphabet trading at a historically low valuation given its significant investments in AI [11] Group 5: Technical Analysis - Alphabet's stock recently found support after dropping below $160 and has since reclaimed the $170 level, indicating a potential short-term bottom and upside if market sentiment improves [12] Group 6: Investment Consideration - Despite recent pullbacks due to market weakness and AI competition concerns, Alphabet's strong financials, continued search dominance, and aggressive AI investments suggest the stock may be undervalued and present an attractive opportunity for long-term investors [13]

Group 1: China Tech Industry Overview - China Tech broadly refers to technology companies based in China that are leaders in various domains, creating a niche market as Beijing aims to reduce reliance on Western technology amid escalating Sino-U.S. trade tensions [3] - With increasing restrictions on high-tech exports from Washington, Beijing has accelerated efforts toward self-sufficiency in critical industries, leading to China's resurgence as a dominant force in the technology sector [4] - Key technology aspects gaining prominence include semiconductors, artificial intelligence, high-performance computing, industrial robots, data centers, satellites, quantum computing, and wireless broadband [4] Group 2: Alibaba's Performance - Alibaba shares have shown strong performance since late January, particularly following news of its new AI model that claims to surpass DeepSeek, with a bullish EPS outlook contributing to positive near-term share movement [6] - The stock is currently ranked 2 (Buy) by Zacks, indicating strong market confidence [6] - Alibaba's AI-related product revenue has maintained a triple-digit year-over-year growth rate for six consecutive quarters, reflecting robust business performance [8] - The stock has experienced significant momentum, increasing nearly 75% in 2025 alone, which has been welcomed by shareholders after years of negative price action [8]

Core Viewpoint - Shopify's shares have experienced a 15.4% decline since reaching a 52-week high on February 18, primarily due to macroeconomic challenges and potential trade wars, although a recent announcement regarding targeted tariffs led to a 4.87% increase in share price [1][2]. Financial Performance - Shopify is currently trading at a Price/Sales ratio of 12.46X, significantly higher than the broader sector's 5.88X, indicating that the stock is overvalued with a Value Score of F [2]. - The Zacks Consensus Estimate for Shopify's 2025 earnings is $1.49 per share, reflecting a year-over-year growth of 14.62%, while the revenue estimate stands at $10.86 billion, indicating a 22.3% growth [16]. Market Position and Strategy - Shopify has been expanding its merchant base, benefiting from innovative tools like Shop Pay and the Shop App, which have contributed to a 39.1% appreciation in shares year-to-date, outperforming the Zacks Computer & Technology and Internet Services industries [7]. - The company plans to shift to a three-month paid trial in certain markets to enhance merchant retention, although this may negatively impact monthly recurring revenue (MRR) growth in the near term [5]. Product and Feature Development - Shopify has introduced over 150 new features to its platform, aimed at enhancing merchant operations and efficiency [10]. - The company is increasing its AI capabilities to assist both new and larger merchants in scaling their businesses [13]. Partnerships and Collaborations - Shopify continues to strengthen its partnerships with major brands and platforms such as TikTok, Instagram, and PayPal, which enhances its payment offerings and sales channels [14][15]. Conclusion - Shopify's growth in its merchant base and strategic focus on improving client offerings are seen as positive catalysts for long-term growth, despite facing macroeconomic challenges and a stretched valuation [19].