But that doesn't mean that investors aren't getting ahead of themselves when it comes to expectations and valuations.The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has been analyzing global ma ...

But that doesn't mean that investors aren't getting ahead of themselves when it comes to expectations and valuations.The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has been analyzing global ma ...

When it comes to mammoth companies like Alphabet Inc. aka Google (NASDAQ: GOOG ), with market caps exceeding $3 trillion, investors typically assume that growth is inherently limited due to the sheer scale of business already achieved. However, whenI specialize in analyzing individual stocks. With a strong educational background in both finance and economics, I’ve developed a deep fascination with the stock market and the potential it offers to investors at all levels. I keep a close watch on market trends, ...

When it comes to mammoth companies like Alphabet Inc. aka Google (NASDAQ: GOOG ), with market caps exceeding $3 trillion, investors typically assume that growth is inherently limited due to the sheer scale of business already achieved. However, whenI specialize in analyzing individual stocks. With a strong educational background in both finance and economics, I’ve developed a deep fascination with the stock market and the potential it offers to investors at all levels. I keep a close watch on market trends, ...

Core Insights - Trade Desk (TTD) has a strong balance sheet with a cash position of $1.7 billion and reported free cash flow of $117 million on revenues of $694 million, reflecting a 19% year-over-year increase [1][10] - The company focuses on AI-driven platforms and data transparency tools, with significant investments in UID2 and Audience Unlimited, enhancing its competitive edge [2] - TTD's disciplined capital allocation is evident as it repurchased $261 million worth of stock in the second quarter, while projecting revenues of at least $717 million for the third quarter, indicating a 14% year-over-year growth [3][4] Financial Performance - TTD's adjusted EBITDA margin stands at nearly 39%, showcasing operational efficiency [1] - The company expects adjusted EBITDA to be around $277 million for the third quarter, contributing to steady cash flows [3] - TTD's liquidity allows for opportunistic share buybacks and investments in AI infrastructure and global expansion [4][5] Competitive Landscape - TTD faces competition from Amazon, which is increasing investments in its DSP and CTV businesses, leveraging extensive proprietary data for optimization [6][7] - Amazon's cash and cash equivalents were reported at $57.7 billion, providing it with significant resources to scale its advertising business [7] - Magnite, another competitor, reported an operating cash flow of $33.9 million and a cash balance of $426 million, indicating a different financial position compared to TTD [8]

Core Insights - Vulcan Value Partners reported positive absolute performance across all strategies in Q3 2025, with the All-Cap Composite leading at 5.5% net return [1] - Alphabet Inc. (NASDAQ:GOOG) showed a one-month return of -0.25% but a significant 53.01% increase over the last 52 weeks, closing at $251.71 per share with a market cap of $3.04 trillion [2] Performance Highlights - The Large Cap Composite returned 4.6% net, Small Cap Composite returned 4.1% net, Focus Composite returned 3.7% net, and Focus Plus Composite also returned 3.7% net [1] - Alphabet Inc. was a material contributor to performance alongside Medpace Holdings Inc. [3] Alphabet Inc. Specifics - Alphabet Inc. received a favorable remedies decision in a DOJ case regarding its distribution agreements, which alleviates some risks to its business model [3] - In Q2 2025, Alphabet Inc. achieved a revenue of $96.4 billion, marking a 14% increase compared to Q2 2024 [4] - Alphabet Inc. ranks 7th among the 30 Most Popular Stocks Among Hedge Funds, with 178 hedge fund portfolios holding its stock at the end of Q2 2025, up from 164 in the previous quarter [4]

Core Insights - Alphabet is expected to report strong third-quarter results on October 29, driven by growth in Google Search and Google Cloud, particularly due to advancements in AI [2][12] - The company has successfully integrated AI into its services, alleviating initial concerns about competition from AI chatbots [3][4] Google Search Performance - Google Search generated $54.2 billion in revenue during Q2 2025, reflecting an 11.7% year-over-year increase, up from 9.7% in Q1 [6] - The introduction of AI Overviews in Google Search has enhanced user experience and attracted advertising revenue at rates comparable to traditional ads, with over 2 billion users monthly [5][4] Google Cloud Growth - Google Cloud, while generating less revenue than Google Search, is central to Alphabet's AI strategy and is a preferred platform for AI development among startups [7] - The cloud segment achieved a record $13.6 billion in revenue in Q2, marking a 32% year-over-year growth, an acceleration from 28% in Q1 [9] - A significant order backlog of $106 billion at the end of Q2 indicates strong demand for Google Cloud services, growing by 38% [10] Financial Metrics - Alphabet's earnings per share for the first half of 2025 reached $5.12, a 35% increase year-over-year [12] - The stock is trading at a price-to-earnings (P/E) ratio of 25.6, making it one of the cheapest among its peers in the tech sector [13] Investment Outlook - Given the positive trends in revenue growth and profitability, Alphabet's stock is viewed as a potentially attractive investment ahead of the earnings report [11][15]

Core Insights - Baidu held the Agent Conference on October 16, where it announced the rebranding of "Baidu Intelligent Cloud Qianfan" to "Baidu Qianfan" [1] - The platform aims to integrate Baidu's AI capabilities more openly, focusing on meeting enterprise needs in Agent development, application, and large model services [1] - As of now, the Qianfan platform has served over 460,000 enterprise clients, with the number of Agents developed exceeding 1.3 million [1] - The daily usage of tool components, represented by "AI search," has surpassed 10 million calls [1]

Core Insights - South Korea is close to deciding whether to permit Google and Apple to export high-resolution geographic map data to servers outside the country, which would provide detailed maps at a 1:5,000 scale, showing streets, buildings, and alleyways in greater detail than currently available [1][4] Regulatory Environment - The National Assembly Defense Committee recently held a parliamentary audit of Google Korea, raising concerns about national security and digital sovereignty regarding the company's requests for local map data [2] - A policymaker has expressed concerns that Google's satellite maps could compromise national security by revealing sensitive military sites, urging the government to regulate the export of high-resolution geographic information [3] - Under South Korea's Geospatial Information Management Act, government survey data cannot be exported without Cabinet approval, reflecting the country's strict control over geospatial data [10] Company Actions - Google has made multiple requests to the Korean National Geographic Information Institute for permission to use a 1:5,000 scale map, which offers more detail than the current 1:25,000 scale map [5] - After being denied approval in August, Google agreed to obscure sensitive military locations on its maps to address government concerns [7] - Apple has also requested to export high-resolution map data, showing a willingness to comply with government restrictions, including blurring sensitive sites [12][13] Competitive Landscape - Local navigation apps like Naver Map, T Map, and Kakao Map dominate the South Korean market, offering 1:5,000 scale maps, which provide a competitive advantage over Google and Apple [5] - The potential export of high-resolution map data could enhance tourism, support local businesses, and drive smart city innovation in South Korea, although critics argue it may primarily benefit U.S. tech giants [14]

Key Takeaways Alphabet shares jumped 34% in three months, outperforming tech and internet peers. Favorable antitrust ruling keeps Google Search and Chrome intact, easing regulatory pressure. Expanding AI Mode and Gemini integration boost Search engagement and support long-term growth. Alphabet (GOOGL) shares have risen 34% in the past three months, outperforming the Zacks Computer and Technology sector’s appreciation of 13.3% and the Zacks Internet Services industry’s 30.7%. GOOGL shares have beaten peers l ...