Core Viewpoint - A Google Search experiment featuring mobile real estate listings powered by HouseCanary may increase traffic acquisition costs for real estate portals like Zillow, but significant disintermediation is deemed unlikely, akin to Google's hotel metasearch model [1] Group 1: Impact on Zillow - Zillow's limited reliance on organic search and relatively modest marketing expenditure compared to its revenue suggests that any transition from organic to paid traffic will likely have a minor financial impact [1] - Wells Fargo maintains an Equal Weight rating on Zillow shares with a price target of $73 [1]

Core Viewpoint - Zillow shares fell over 9% due to concerns about competition from Google Search entering the real estate market [1][3] Group 1: Google’s Entry into Real Estate - Google is testing the integration of real estate listings into its search results, powered by HouseCanary [2] - The listings allow users to view property details, request tours, and contact agents, similar to Zillow's offerings [2] Group 2: Market Reaction - The decline in Zillow's stock indicates investor anxiety regarding Google's potential impact on the real estate sector [3] - At one point, Zillow's stock was down at least 11% during the trading session [3] Group 3: Analyst Insights - Analysts note that Zillow's reliance on organic search is limited, which may mitigate potential risks in the short term [3] - Wells Fargo analyst Alec Brondolo stated that a significant financial impact from Google’s listings is not expected, as Zillow does not heavily depend on organic search for traffic [4] - Brondolo compared Google's listings to its hotel metasearch results, suggesting that Zillow and other platforms may bid for home listing ad units rather than Google monetizing directly [5]

Core Insights - Alphabet's stock has experienced significant growth, rising over 80% since July 1, 2025, and is expected to continue this momentum into 2026 [1][2] - The company is positioned to potentially become the world's largest company, currently holding a market cap of $3.9 trillion, closely trailing Nvidia and Apple [4] - Alphabet's growth is driven by strong earnings growth, particularly in its core Google Search and cloud computing divisions [6][10] Google Search Performance - Google Search, Alphabet's primary business, has shown a 15% revenue growth in Q3 2025, despite facing a monopoly case earlier in the year [7] - The resolution of the monopoly case in September has positively impacted the stock, allowing for continued solid growth [7] Generative AI and Competitive Position - Alphabet has made significant strides in the generative AI space, reportedly causing OpenAI to declare a "code red" due to Alphabet's competitive advancements [8] - The Gemini model is highlighted as a strong contender in the AI race, indicating Alphabet's potential to lead in this sector [8] Cloud Computing Growth - Google Cloud has seen a 34% year-over-year revenue increase in Q3, benefiting from the demand for AI-focused data centers [10] - The operating margin for Google Cloud improved from 17% to 24% year-over-year, showcasing enhanced profitability [10] Future Growth Opportunities - Alphabet is exploring new revenue streams through the potential sale of its Tensor Processing Units (TPUs) to Meta Platforms, which could further boost its stock price [12][13] - The company is also investing in quantum computing, having run the first verifiable algorithm on its Willow chip, positioning itself for future advancements in computing technology [14] Overall Outlook - Alphabet is excelling across multiple business units and is seen as a promising investment in the AI sector, with expectations of continued market leadership into 2026 and beyond [15]

Market Concentration and Performance - The S&P 500 is experiencing historic concentration, with the top 10 companies accounting for over 40% of the index's total weight, leading to a divergence between equal-weighted and capitalization-weighted indices [4][5] - The performance divide indicates that the median stock's performance is not accurately reflected by the cap-weighted index, highlighting the challenges for active investment strategies that typically focus on smaller and mid-cap stocks [5][6] Market Dynamics - High retail participation and speculation are distorting valuation logic, with some stocks trading at levels disconnected from fundamentals, exemplified by Palantir's high multiples [6] - The dominance of AI is influencing market dynamics, with many winning stocks connected to AI, even among smaller companies in the Russell 2000 index, which often have high EV/S ratios despite lacking revenue [6][8] Investment Opportunities - The healthcare sector is identified as mispriced, with a widening valuation gap favoring investors [8] - Capital One's acquisition of Discover is seen as transformative, positioning it to generate substantial value and redefine its competitive standing in the payments landscape [19][29] - The acquisition allows Capital One to leverage a key exemption related to the Durbin Amendment, potentially increasing debit interchange rates and delivering over $1 billion in network synergies by 2027 [21][29] Capital One's Strategic Positioning - The merger with Discover enhances Capital One's scale, making it the largest credit card issuer in the U.S. and improving its loan book mix by reducing consumer subprime risk [26][30] - Capital One's technological infrastructure and operational expertise are crucial for integrating Discover's systems, with expected annual expense savings of approximately $1.5 billion [23][25] - The combined entity is projected to achieve an EPS of $25 by 2027, with a ROTCE exceeding 20%, justifying a higher market multiple than its current valuation [31]

Group 1: Meta Platforms and AI Glasses - Meta Platforms' partnership with EssilorLuxottica has led to significant success in AI glasses, transforming a capital-intensive experiment into a commercially viable business [1] - The emergence of generative AI has prompted major investments in the eyewear sector, exemplified by Alphabet's $150 million commitment to Warby Parker [1] Group 2: Google's AI Glasses Launch - Google plans to launch its first AI glasses next year, collaborating with Samsung and Gentle Monster, in addition to Warby Parker [2] - The glasses will utilize Google's Android XR operating system and will allow audio-based interaction with the Gemini AI assistant, along with an in-lens display for translations and directions [3] Group 3: Alphabet's Financial Performance - Alphabet has seen a remarkable stock performance, with GOOGL stock generating over 70% returns in the last 12 months, significantly outperforming the S&P 500 Index, which returned 13.35% [4] - The ongoing rally in AI investments has led to speculation about an AI bubble, with concerns about whether returns will match the substantial infrastructure investments [5] Group 4: Valuation Metrics - GOOGL is considered overvalued based on various metrics, with a forward P/E ratio of 30x, which is 26.5% above its five-year historic average of 23.8x [6] - The stock is trading at a price-to-sales ratio that is 62% above its five-year average, and on a price-to-cash flow basis, it is at a multiple of 24.29x, which is 44% above its five-year average [6]

They all have a huge long-term growth runway.With less than three weeks left in the year, the S&P 500 is thriving, up nearly 17%. Will it be able to manage a fourth year of double-digit gains in 2026? There's no way to know. What investors should be focused on instead is making sure their portfolios are well diversified with growth stocks to benefit from strong gains and solid value stocks to fortify their positions if there's market volatility.With that in mind, Alphabet (GOOG +0.27%), Nu Holdings (NU 0.27 ...

EU launches antitrust probe into Google’s AI search tools https://t.co/rlOrRHZiDW ...

The European Union's (EU) antitrust regulator, the European Commission, has opened up an investigation into the US-based search engine and technology giant, Google, alleging that the company has abused its market dominance using artificial intelligence (AI) tools to squeeze competitors, reported the news agency Bloomberg on Tuesday, 9 December 2025.According to the agency report, the European Commission said that the regulator will investigate whether Google's parent company, Alphabet Inc., has distorted it ...

frankpeters/iStock Editorial via Getty Images Listen below or on the go on Apple Podcasts and Spotify Paramount looks to snake Netflix’s Warner Bros. deal at $30/share. (0:15) Wedbush gets more bullish on Apple. (1:54) Top Berkshire lieutenant following Buffett out the door. (2:29) This is an abridged transcript of the podcast: Our top story so far, Paramount is pitching a sequel. Paramount Skydance (PSKY) has launched a hostile $30 per share all-cash tender offer for Warner Bros. Discovery (WBD) — t ...

A Wall Street sign is viewed in front of the New York Stock Exchange.Eduardo Munoz | AFP | Getty ImagesThis is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Here are five key things investors need to know to start the trading day:1. Secret SantaThe three major indexes are coming off back-to-back winning weeks, with the S&P 500 on Friday rising closer to records it set earlier this year. Stocks' advances came as investors geared up for the last Federal Reserve poli ...