Key Points Alphabet is the most important internet company in the world. The cloud computing segment grew by more than 30%. Alphabet has a massive opportunity with its Tensor Processing Units. 10 stocks we like better than Alphabet › The "Magnificent Seven" grouping of stocks represents seven of the biggest and most influential companies in the world that make up roughly one-third of the market cap-weighted S&P 500. Its members have a significant impact on whether the overall stock market rises o ...

Group 1 - Nvidia is a leading player in the AI infrastructure boom, with its GPUs being the primary chips for AI workloads, commanding over 90% market share in the GPU data center space [3][4] - Nvidia's revenue has seen explosive growth, increasing by 62% last quarter and more than tripling over the past two years, with new opportunities arising from U.S. government approval to sell certain chips to China [4] Group 2 - Alphabet is positioned to be a major winner in AI, with a complete AI tech stack that includes the Gemini large language model and Tensor Processing Units, providing a structural cost advantage [5][6] - Google Cloud revenue grew by 34% last quarter, with operating income surging 85%, while Google Search revenue is accelerating due to new AI features [6]

Core Points - A U.S. judge finalized the consequences for Google regarding its search monopoly ruling, adding new details to the remedies [1][2] - Google was previously found to hold an illegal monopoly in internet search, with minimal consequences from the Department of Justice's proposed remedies [1][2] - Alphabet shares increased by 8% in extended trading, indicating investor relief over the perceived minimal impact of the ruling [2] Summary by Sections - **Antitrust Case Background** - The antitrust trial commenced in September 2023, with a ruling made by U.S. District Judge Amit Mehta [3] - The judge ruled against the most severe consequences proposed, such as the forced sale of Google's Chrome browser [2] - **Remedies and Restrictions** - Google is allowed to make payments to preload products but cannot have exclusive contracts that condition payments or licensing [3] - The company must loosen its hold on search data and make certain search index data and user interaction data available, excluding ads data [3] - **Market Reaction** - Investors largely viewed the ruling as non-impactful, although some noted it could still have negative implications for Google [2]

Core Insights - Billionaire hedge fund investors are closely monitored by the stock market, as they are among the most successful investors globally, making their investment moves attractive to retail investors [1][2] - Retail investors are advised to conduct their own research, as billionaires often trade based on short-term horizons and different rationales, and may not be making every buy-and-sell decision attributed to them [2] Company Overview - Alphabet (GOOG) has seen a significant increase of 65% in its stock price this year, despite facing volatility and a lawsuit from the U.S. Department of Justice regarding monopolistic practices [4][6] - Notable billionaire investors have made substantial investments in Alphabet, including Warren Buffett's Berkshire Hathaway, which purchased over 17.8 million shares valued at over $5.6 billion, and Stanley Druckenmiller's Duquesne Family Office, which initiated a new position with 102,200 shares [5] Financial Metrics - Alphabet's current stock price is $318.01, with a market capitalization of $3,869 billion [6] - The stock trades at less than 30 times forward earnings, which is considered relatively cheap compared to other high-valuation AI stocks [7] Business Strengths - Alphabet has a diversified business model with strong growth potential in areas such as Google Cloud, YouTube, Waymo, and an emerging semiconductor business, providing a safety net if AI initiatives do not perform as expected [8]

Core Insights - Sands Capital Select Growth Strategy reported a portfolio return of 6.3% (net) for Q3 2025, underperforming the benchmark's gain of 10.5% [1] - The recovery in U.S. large-cap growth equities was driven by strong corporate earnings, enthusiasm for artificial intelligence (AI), and expectations for Federal Reserve policy easing [1] Company Highlights: Alphabet Inc. (NASDAQ:GOOG) - Alphabet Inc. achieved a one-month return of 16.39% and a 52-week gain of 87.50%, with a stock price of $320.28 and a market capitalization of $3.866 trillion as of November 26, 2025 [2] - The company operates major platforms including Google and YouTube, leveraging consumer reach to sell targeted advertising, which benefits from search intent data [3] - AI is expected to transform online search, providing Alphabet with opportunities to expand its market through enhanced consumer experiences and AI assistants [3] - Google Cloud is improving its competitive position, and Alphabet's other businesses, including YouTube and Waymo, are gaining market recognition [3]

Core Viewpoint - SoundHound AI has experienced significant volatility, with a stock increase of 835% in 2024 followed by a decline of 43% in 2025, raising concerns about its sustainability in the AI market [1][2]. Group 1: SoundHound AI - SoundHound AI's voice AI platform is utilized by various industries, including restaurants and automakers [1]. - The company has faced a steep drop in stock price, with a 38% decrease in the last month alone [1]. Group 2: Nvidia - Nvidia is considered immune to the AI bubble, with CEO Jensen Huang highlighting a "virtuous cycle of AI" as more industries adopt the technology [3]. - Nvidia holds a dominant market share of up to 90% in data center chips, with third-quarter fiscal 2026 revenue reaching $57 billion, including $51.2 billion from data center chips [4]. - The company's data center revenue grew by 66% year-over-year, significantly outpacing competitor AMD, which saw a 22% increase [5]. - Nvidia has provided guidance for $65 billion in revenue for the fourth quarter of fiscal 2026, representing a 65% increase from the previous year [5]. Group 3: Alphabet - Alphabet has made significant advancements in AI, integrating it into its products and investing in AI infrastructure [7]. - The company dominates the internet services market, with a 73% market share in the Chrome browser and a 90% market share in its Google search engine [8]. - Alphabet's advertising revenue in the third quarter was $74.18 billion, up 12.6% year-over-year, contributing to over 70% of its total quarterly revenue of $102.3 billion [9]. - The introduction of AI Overviews and the Gemini chatbot has helped Alphabet maintain its search market share against competitors like ChatGPT [10]. - Google Cloud, the third-largest cloud provider, reported a 33.5% increase in revenue to $15.15 billion in the third quarter, indicating its growing importance to Alphabet's business [12][13]. Group 4: Investment Outlook - Both Nvidia and Alphabet are part of the "Magnificent Seven" and have shown strong performance in 2025, with Nvidia up 30% and Alphabet up 58% [14]. - The dominant positions of Nvidia and Alphabet in their respective markets make them less susceptible to long-term disruptions, even in the event of an AI bubble burst [15]. - Nvidia's unmatched GPU technology and Alphabet's AI-enhanced advertising and growing Google Cloud revenue position them as reliable long-term investments in the AI sector [15].

Core Insights - The U.S. antitrust enforcement is intensifying against major tech companies, including Alphabet, Meta, Amazon, Apple, Microsoft, and Nvidia, focusing on their market dominance and competitive practices [1][2]. Alphabet (Google) - Google is currently involved in two significant antitrust cases, one requiring it to share search data with competitors and another regarding its online advertising technology [3][5]. - A judge ruled that Google must share data to enhance competition in online search and cannot enter exclusive agreements with device makers [3][4]. - Google is appealing the ruling, which may delay compliance, while it has already begun to adjust its agreements with device manufacturers and carriers [4][6]. Meta Platforms - Meta is facing an antitrust trial initiated by the U.S. Federal Trade Commission (FTC) aimed at reversing its acquisitions of Instagram and WhatsApp, with evidence suggesting strategic purchases to eliminate competition [7]. - The judge overseeing the case is not expected to make a ruling until late 2025 [8]. Amazon - Amazon is under scrutiny from the FTC and state enforcers for allegedly using anti-competitive tactics to maintain its dominance in online retail [9]. - The FTC claims that Amazon's pricing algorithm has led to increased costs for U.S. households by over $1 billion, although Amazon asserts that the algorithm was discontinued in 2019 [10]. - A trial regarding these allegations is scheduled for February 2027 [10]. Apple - Apple is being sued by the Justice Department and a coalition of states for restricting competition by limiting app and device makers, which keeps iPhone users within its ecosystem [11]. - Apple's motion to dismiss the case was rejected, with information exchange deadlines extending into early 2027, and no trial date set yet [11]. Microsoft - The FTC has opened a probe into Microsoft for potentially abusing its market power in productivity software, but no formal case has been filed yet [12]. Nvidia - The Justice Department is investigating Nvidia, a leading semiconductor company, particularly in relation to its role in powering artificial intelligence applications, but no lawsuit has been initiated [13].

Core Insights - Google and Epic Games have reached a settlement in a long-standing antitrust dispute regarding app distribution and monetization on Android devices [1][2][3] Group 1: Settlement Details - The settlement maintains much of the original court orders but introduces new commission caps of 9% or 20% for purchases made outside the Play Store, depending on the transaction type [4] - The agreement replaces access to the app catalog with provisions for "registered app stores" that will receive equal treatment to the Play Store on Android devices [4] Group 2: Background Context - The settlement follows a jury ruling in favor of Epic Games in 2023, which found that Google monopolized app access and payment methods on Android [3] - The U.S. Supreme Court recently denied Google's request for a temporary hold on a lower court ruling that mandated changes to the Play Store [3]

Core Insights - Alphabet is experiencing significant growth driven by its Google Cloud segment and the integration of AI technologies, positioning itself favorably in the competitive landscape of AI and cloud services [2][5][15] Company Overview - Alphabet is a leading technology company known for its dominance in internet search through Google, which holds nearly 90% of the global search market share, and its Chrome browser with approximately 3.5 billion users [1][2] - The company reported a revenue of $102.35 billion and a net income of $34.9 billion, with a market capitalization of $3.4 trillion [8] Financial Performance - In Q3 2025, Alphabet's revenue reached $15.2 billion, marking a 34% increase year over year, with a consistent upward trend in revenue growth across the previous quarters [19] - The company's earnings per share stood at $2.87, reflecting strong financial health [8] Google Cloud Growth - Google Cloud is evolving from a traditional data storage provider to a major player in AI infrastructure, with a backlog of business increasing from $106 billion to $155 billion [11][12] - The demand for Google Cloud is fueled by the adoption of AI technologies, particularly its Tensor Processing Units (TPUs), which are designed to be cost-effective and energy-efficient [12][13][14] AI Integration and Competitive Positioning - Alphabet's AI chatbot, Gemini, has gained significant traction, boasting over 650 million active monthly users and competing closely with OpenAI's ChatGPT [10][9] - The integration of AI features into Google search has stabilized ad revenue growth, which increased by 15% year over year in Q3 2025, surpassing Wall Street's expectations [15][16] Analyst Outlook - Bank of America has revised its earnings forecast for Alphabet, increasing projections for 2026 by 4% and for 2027 by 7%, leading to a new stock price target of $335 per share [17] - Analysts believe Alphabet is well-positioned in the AI landscape, with proprietary technology and a large user base, despite the competitive pressure from ChatGPT [17]

Core Insights - Alphabet (GOOGL) shares reached a record high after reporting earnings that exceeded Wall Street estimates, with quarterly revenue surpassing $100 billion for the first time [1][8] Financial Performance - In Q3, Google Cloud revenue increased by 34% year-over-year, driven by significant investments in AI infrastructure and data analytics [2] - The legacy advertising business saw a 13% revenue growth, indicating stability in the digital ad market despite economic uncertainties [2] - The company raised its capital expenditure forecast for the year to between $91 billion and $93 billion, reflecting strong demand for AI [2] Stock Performance - Alphabet shares rose nearly 5% to around $288, with over 50% gains since the start of 2025, making it the top-performing stock among the Magnificent Seven [3] - The stock broke out from a flag pattern, suggesting a continuation of its strong uptrend, although the relative strength index indicates overbought conditions [5][8] Technical Analysis - The measuring principle suggests a potential upside target of $360 for Alphabet shares if the rally continues [8] - Key support levels to monitor are around $235 and $205 [8]