Group 1 - Alphabet Inc. (Google) and Apple Inc. have underperformed compared to most of the Mag7 peer group for most of the year until the current quarter [2] - The article emphasizes the importance of exclusive insights into high-focus stocks and curated watchlists for investors [1] - The realized return on closed positions for Tech Contrarians is reported at 65.8% since inception, indicating strong performance [1] Group 2 - The article does not provide specific investment recommendations or advice regarding the suitability of investments for particular investors [3] - There is a disclosure stating that the author has no stock or derivative positions in the companies mentioned and no plans to initiate any such positions [2] - Seeking Alpha's analysts are described as third-party authors, which may include both professional and individual investors [3]

Company Overview - GoDaddy Inc. assists millions of entrepreneurs worldwide in starting, growing, and scaling their businesses [2] - The company provides services such as domain naming, website building, logo creation, product sales, and payment processing [2] - GoDaddy Airo®, an AI-powered experience, facilitates faster business growth by helping users establish an online presence quickly, drive traffic, and increase sales [2] Upcoming Events - GoDaddy's Chief Financial Officer Mark McCaffrey will present at Citi's 2025 Global TMT Conference in New York City on September 3, 2025, at 8:50 a.m. ET [1] - A live audio webcast and post-presentation audio replay will be accessible on GoDaddy's investor relations website [1]

Core Points - A controversy has arisen regarding Baidu's cloud storage service, where it was alleged that the service altered the default image viewing software on users' computers to its own "Smart Viewer" application without clear identification as a Baidu product [1][2] - The incident gained traction on social media after a user claimed that their computer's default image opening method was changed, leading to discussions among netizens [1] - Testing revealed that while the default opening method was not altered upon double-clicking images, the "Smart Viewer" application appeared as the first option when right-clicking, raising concerns about user awareness and consent [1][2] Company Insights - The "Smart Viewer" application prompts users for permission to make changes to their devices, and upon refusal, it still allows access to images, indicating a potential user experience issue [2] - The application includes features such as "AI editing" and direct uploads to Baidu's cloud storage, suggesting a push towards integrating AI capabilities within Baidu's software ecosystem [2]

Group 1 - The parent company of Google, Alphabet, is currently trading at its all-time high, which is not attributed to an AI bubble [1] - The analysis emphasizes a value-oriented approach to investment, suggesting that valuation is more indicative of long-term opportunities or risks rather than short- to mid-term timing [1] - The article aims to provide informative content rather than making specific investment decisions, often rating stocks as hold/neutral even when the inclination may be bullish or bearish [1] Group 2 - The author has a beneficial long position in GOOGL shares, indicating confidence in the stock's performance [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2]

Core Viewpoint - Alphabet is undervalued as an AI megacap stock, trading at a forward P/E ratio of less than 19 times analysts' 2026 earnings estimates, despite its strong positions in search, mobile, video, cloud computing, and robotaxi businesses [2][16]. Search and AI - Alphabet's stock is perceived as cheap due to investor concerns about AI disrupting its Google Search business, but search revenue growth accelerated by 12% year over year to $54.2 billion in Q2 [3][17]. - Over 2 billion users engage with AI Overviews in Google Search, and the newly launched AI Mode is gaining popularity, with 82% of users finding it more useful than traditional search [5][6]. Distribution Advantage - Alphabet benefits from not needing to change consumer habits, as billions already use Google daily, enhancing user experience through AI integration [6]. - Google controls two-thirds of the global browser market with Chrome and powers over 70% of smartphones with Android, making it a primary entry point to the internet for billions [7]. Advertising Network - Alphabet has built a powerful advertising network over decades, serving a wide range of clients from global brands to local businesses, creating a significant competitive moat [8]. Cloud Computing - Google Cloud is a major growth driver, with revenue surging 32% in Q2 to $13.6 billion and operating income more than doubling to $2.8 billion [10]. - Adoption of Google's AI models and custom tensor processing units (TPUs) is increasing, providing a cost advantage for Google Cloud [11][12]. - Demand for cloud services is so high that capacity constraints may persist into 2026, prompting Alphabet to invest in new data centers to enhance profitability [13]. Emerging Businesses - Alphabet's Waymo is leading in the autonomous driving sector, currently available in multiple cities and testing in 10 new markets [14]. - Advancements in quantum computing, particularly with the Willow chip, could provide significant growth opportunities in the future [15]. Investment Opportunity - Despite its strong market position and emerging business potential, Alphabet trades at one of the lowest valuations among major tech AI leaders, making it an attractive investment for exposure to AI and emerging technologies [16][17].

Core Viewpoint - Alphabet (GOOGL) is transitioning from a laggard to a leader in the tech sector, showing improved performance and strong catalysts for growth in the second half of the year [3][4]. Financial Performance - GOOGL's stock price is currently $206.09, up 42% from its 52-week low, with a P/E ratio of 21.95 and a price target of $211.53 [2]. - The stock has gained over 18% in the past quarter, outperforming many peers and the overall market [2][3]. - Despite being up only 5.5% year-to-date, recent performance acceleration indicates potential for further growth [3]. Strategic Developments - Alphabet has entered a groundbreaking agreement with Kairos Power and the Tennessee Valley Authority to supply 50 megawatts of nuclear power to its data centers, with plans to expand to 500 megawatts by 2035 [4][5]. - This initiative positions Alphabet as a leader in sustainable energy solutions for its AI workloads, addressing significant power demands [5][6]. Cloud Services Growth - A significant six-year cloud services deal valued at $10 billion has been established between Meta Platforms and Alphabet, enhancing Alphabet's cloud infrastructure for AI workloads [7][8]. - This partnership underscores the increasing demand for Alphabet's cloud services and reinforces its strategic role in the AI ecosystem [8][9]. Technical Analysis - The stock is showing bullish technical signals, having broken into a new upward channel after a period of sideways movement [10][11]. - A sustained price above $200 could lead to further gains, especially if positive news continues [11][12].

Core Insights - Apple is in early discussions with Google to utilize its Gemini AI for a significant redesign of the Siri voice assistant, with a decision expected in the coming weeks regarding whether to continue with in-house models or partner with Google [1][2][3] Group 1: Partnership and Development - Apple has approached Google to create a custom AI model for a revamped Siri, which is anticipated to launch next year [2][6] - The decision on whether to partner with Google or stick with internal development is still pending, with no final partner chosen yet [2][3] Group 2: Competitive Landscape - Apple has fallen behind competitors like Google and Samsung in implementing generative AI features, which have been rapidly adopted in their products [3][7] - Siri has historically struggled with complex requests and third-party app integration compared to Alexa and Google Assistant [7] Group 3: Project Delays - The overhaul of Siri, initially scheduled for spring 2023, has been delayed by a year due to engineering challenges [5]

Core Viewpoint - Alphabet's recent earnings report shows strong performance with significant year-over-year growth in earnings and revenues, raising questions about the sustainability of this positive trend leading up to the next earnings release [1][2]. Financial Performance - Alphabet's Q2 2025 earnings were $2.31 per share, exceeding estimates by 7.44% and growing 22.2% year over year [2]. - Total revenues reached $96.43 billion, a 13.8% increase year over year, with net revenues (excluding TAC) at $81.72 billion, surpassing estimates by 2.2% and growing 14.5% year over year [3]. - Google Cloud revenues surged 31.7% year over year to $13.62 billion, accounting for 14.1% of total revenues and beating estimates by 4.24% [4]. - Google Services revenues increased 11.7% year over year to $82.54 billion, making up 85.6% of total revenues and exceeding estimates by 3.28% [5]. - Google advertising revenues rose 10.4% year over year to $71.34 billion, representing 74% of total revenues and beating estimates by 3% [6]. Segment Performance - Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing estimates by 3.04% [6]. - YouTube's advertising revenues improved 13.1% year over year to $9.77 billion, beating estimates by 2.9% [6]. - Google Network revenues decreased 1.2% year over year to $7.35 billion but still beat estimates by 2.88% [7]. - Google subscriptions, platforms, and devices revenues were $11.2 billion, up 20.3% year over year, exceeding estimates by 4.72% [7]. - Other Bets' revenues were $373 million, up 2.2% year over year, but missed estimates by 12.16% [7]. Cost and Margin Analysis - Operating expenses were $65.16 billion, up 13.7% year over year, with the operating margin at 32.4%, expanding 10 basis points year over year [8]. - Google Services' operating margin was 40.1%, contracting 10 basis points year over year, while Google Cloud's operating income increased to $2.83 billion from $1.17 billion year over year [8]. Balance Sheet and Cash Flow - As of June 30, 2025, cash and marketable securities totaled $95.15 billion, slightly down from $95.33 billion as of March 31, 2025 [10]. - Long-term debt increased to $23.61 billion from $10.89 billion, following the issuance of $12.5 billion in senior unsecured notes [11]. - Cash generated from operations was $27.75 billion in Q2 2025, down from $36.15 billion in Q1 2025, with capital expenditures of $22.45 billion, resulting in free cash flow of $5.3 billion [11]. Future Outlook - Alphabet expects to increase capital expenditures to $85 billion for 2025 [12]. - Consensus estimates for Alphabet have trended upward, with a 5.39% increase due to recent performance [13]. - Alphabet holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15].

Eager to establish dominance in artificial intelligence, Meta has signed up to use cloud-computing services from Google Cloud in a deal worth at least $10 billion over six years, according to a report from Bloomberg.The deal would expand Meta's capabilities as it continues to push into AI tools and services across its platforms, including Facebook, Instagram and WhatsApp. AI requires an enormous amount of computing resources, which requires more data center bandwidth. In turn, those data centers need an inc ...

Core Viewpoint - Baidu's Q2 2025 financial report shows that AI new business revenue has exceeded 10 billion, marking a 34% year-on-year growth, indicating strong momentum in AI-driven revenue streams [1] Group 1: Financial Performance - Baidu's AI new business revenue for Q2 2025 reached over 10 billion, reflecting a 34% increase compared to the previous year [1] - The report highlights that the transition to AI in Baidu's search business has led to increased user engagement and usage duration [1] Group 2: Market Outlook - CMB International's research report indicates that AI new businesses like "Luobo Kuaipao" and Baidu Smart Cloud are progressing well and are expected to be long-term drivers of revenue growth, setting a target price of $132 [1] - Multiple institutions express optimism about Baidu's AI business development, with Guosen Securities highlighting the potential impact of AI technology on Baidu's search and smart cloud businesses [1] - Benchmark and Seeking Alpha analysts maintain a positive outlook on Baidu's long-term investment value due to its leading position in AI and autonomous driving markets [1] - CMB International's research team is optimistic about the long-term AI products accelerated by large model iterations and commercialization opportunities, including Robotaxi [1]