Market Overview - The U.S. stock market is closed on February 16, 2026, for Presidents' Day, but global financial activity remains focused on the previous week's momentum and U.S. equity futures [1] - U.S. stock futures showed modest gains, with S&P 500 futures up 0.2% and Dow Jones futures also up 0.2%, indicating a cautiously optimistic start to the week [2] Economic Outlook - The latest Consumer Price Index (CPI) data indicates U.S. inflation cooled to 2.4% year-over-year in January, down from 2.7% in December, reviving hopes for multiple interest rate cuts in 2026 [3] - The yield on the 10-year U.S. Treasury remained flat at 4.052%, suggesting stabilization after previous volatility, with analysts anticipating potential interest rate cuts if economic data continues to show easing price pressures [4] Major Stock News - Apple (AAPL) is in focus after announcing a partnership to integrate Alphabet (GOOGL)'s Gemini AI models into Siri, with shares trading between $254.98 and $264.16 [5] - Alphabet reached a historic market capitalization of $3 trillion, joining Microsoft (MSFT) and Nvidia (NVDA) [5] - Nvidia (NVDA) saw a stock decline of 2.2% amid concerns over software industry disruptions from rapid AI advancements [6] - Tesla (TSLA) continues to experience high volatility as the market evaluates its shift towards autonomous driving software [6] - Coinbase (COIN) surged 16.46% due to a rally in cryptocurrency markets, while Applied Materials (AMAT) gained 8.08% following a strong earnings report [7] Global Market Performance - International markets remain active, with India's Sensex rising 650 points to close at 83,277.15, driven by banking stocks [8] - European markets showed upward trends, with the Stoxx Europe 600 climbing 0.3% [8] - Asian markets were mixed, with Japan's Nikkei 225 declining 0.2% due to disappointing GDP data, while Chinese markets were closed for the Lunar New Year [8] Upcoming Events - The earnings calendar for the week includes high-profile releases from Walmart (WMT), Home Depot (HD), Cisco Systems (CSCO), Alibaba (BABA), and Baidu (BIDU), which will provide insights into global consumer health and enterprise technology spending [9][10]

Market Overview - The stock market closed mixed, with the Dow up 0.5% (259 points), while the NASDAQ fell 1.5% [1][2] - The S&P 500 was down about 0.5%, but the equal-weighted S&P 500 index closed up nearly 1% at a record high [2][3] - Small-cap indices showed varied performance, with the Russell 2000 down 0.7% and the S&P 600 up 0.9% [3] Sector Performance - The Dow Jones transports surged over 2% for three consecutive days, totaling an 8% increase, a trend not seen since May 2025 [4] - The materials sector led gains, with gold and silver trades up over 2%, followed by energy, which also rose by 2% [5] - The technology sector was the biggest loser, down 2.82%, with significant declines in major tech stocks like AMD (down 17%) and Palantir (down 11%) [5][6] Alphabet's Q4 Earnings - Alphabet reported Q4 operating income of $35.93 billion, slightly below the expected $36.95 billion, with total revenue of $113.83 billion, exceeding the estimate of $111.4 billion [9][10] - Google Cloud revenue was reported at $17.66 billion, surpassing the estimate of $16.2 billion, indicating strong performance in that segment [10][24] - The company projected 2026 capital expenditures between $175 billion and $185 billion, significantly higher than the consensus estimate of $120 billion, leading to a drop in stock price by about 6% in after-hours trading [11][12] Qualcomm's Q1 Results - Qualcomm reported Q1 EPS of $3.50, exceeding estimates of $3.41, with revenue of $12.3 billion, also better than the expected $12.2 billion [34][35] - The outlook for Q2 revenue is projected between $10.2 billion and $11 billion, below the previous estimate of $11.18 billion, due to headwinds from memory shortages in the smartphone market [36][40] - Qualcomm is diversifying its business beyond smartphones, focusing on markets like PC chips and robotics [37][38] Investment Strategies - A neutral stance on equities is maintained, with an underweight position in U.S. stocks compared to international markets, driven by attractive valuations overseas [43][45] - The current market environment shows targeted selling primarily in technology, with a focus on quality investments outside the tech sector [47][48] - Concerns about future earnings growth and valuation in the tech sector, particularly among the Magnificent Seven, are leading to a cautious investment approach [53][56]

Core Insights - Alphabet's Q4 earnings report showed operating income of $35.93 billion, slightly below the expected $36.95 billion, while revenue reached $113.83 billion, exceeding the estimate of $111.4 billion [1][3] - Google Cloud revenue was reported at $17.66 billion, surpassing the estimate of $16.2 billion, indicating strong performance in this segment [2][15] - The company projected capital expenditures (capex) for 2026 between $175 billion and $185 billion, significantly higher than the street consensus of around $120 billion, which has raised concerns among investors [2][4] Financial Performance - Q4 operating income was $35.93 billion, while revenue was $113.83 billion, both key metrics indicating overall strong performance despite some misses on expectations [1][3] - Google Cloud's revenue of $17.66 billion exceeded expectations, showcasing growth potential in this area [2][15] - The capex forecast for 2026 is notably higher than market expectations, which may impact investor sentiment [2][4] Market Reaction - Following the earnings report, Alphabet's stock experienced a decline of approximately 6% in after-hours trading, attributed to high expectations and the capex forecast [3][5] - The stock had previously risen about 80% over the past six months, indicating a significant shift in investor sentiment towards the company [3][12] - Analysts noted that the results were strong overall, but the focus on capex numbers and operating income may have contributed to the stock's volatility [8][9] Strategic Insights - The company is seen as well-positioned in the AI space, with ongoing investments in AI technologies and infrastructure, which are expected to drive future growth [4][10] - Analysts believe that Google is capitalizing on opportunities in generative AI, which could enhance its competitive position against rivals like Amazon and Microsoft [13][19] - The combination of Google Cloud, YouTube, and search capabilities is viewed as a broadening of growth drivers, providing durability to the overall business [17][21] Future Outlook - The Google Cloud opportunity is anticipated to grow significantly, with expectations of reaching a $100 billion revenue business over time [16] - Analysts express confidence in Alphabet's ability to generate strong free cash flow and compound growth rates in the coming years [20][22] - The company's investments in AI and infrastructure are expected to yield long-term benefits, positioning it favorably in the tech landscape [14][22]

Google Cloud, one of Alphabet's fastest-growing businesses, and Liberty Global have agreed a five-year strategic partnership to deploy Google's Gemini AI models and other cloud tools across the cable ... ...

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Core Insights - Google has experienced a significant increase in sales of its Gemini AI models, indicating an improvement in model quality [2][3] - The surge in AI model sales is expected to enhance revenue from Google Cloud's core server sales business, as AI spending often leads to increased expenditure on other Google products [2] Group 1: Sales and Revenue Impact - Requests to the Gemini API more than doubled from March to August of the previous year, reflecting strong demand for Google's AI offerings [3] - The partnership with Walmart aims to leverage AI to enhance customer engagement and drive sales, indicating a strategic growth opportunity for both companies [5][6] Group 2: Challenges and Innovations - A key challenge for Google is persuading business customers to invest in the complex software built on its AI models, which is essential for improving profit margins [4] - The collaboration with Walmart seeks to transform traditional eCommerce by allowing consumers to interact with Gemini using natural language, thus providing personalized shopping experiences [6][7]

Core Insights - Apple has partnered with Alphabet to enhance Siri using advanced AI technology, integrating Google's Gemini AI models into Siri and Apple Intelligence features [1] - This collaboration has positively impacted the stock market, with Google's stock rising and its market cap exceeding $4 trillion, while analysts are optimistic about Apple's growth potential in AI [2] - Apple is under pressure to improve its AI capabilities after previously delaying Siri upgrades, and it will maintain its partnership with OpenAI for ChatGPT integration, raising questions about the coexistence of these AI partnerships [3][4] Company Overview - Apple is a leading global company in hardware, software, and services, with a market cap of $3.75 trillion and a diverse product portfolio including the iPhone, iPad, Mac, and Apple Watch [5] - Over the past year, Apple's stock has increased by 11.95%, reaching a 52-week high of $288.62 on December 3, 2025, driven by strong demand for the iPhone 17 series and positive earnings reports [6] - In early January 2026, Apple experienced a decline in stock price due to profit-taking, with the stock falling for seven consecutive trading sessions since December 30 [7]

Core Viewpoint - Bank of America is bullish on Apple stock ahead of earnings on January 29, driven by a significant partnership with Google to enhance Siri and strong demand for the iPhone 17 [1][2][4]. Group 1: Earnings Expectations - Bank of America anticipates a strong December quarter with projected sales of $140 billion and an EPS of $2.69, both exceeding market consensus [7]. - The bank expects iPhone unit sales to reach 85 million for the December quarter, reflecting a 17% year-over-year increase [9]. - Services revenue is modeled to grow by 13% year-over-year, despite challenges in the App Store in China [9]. Group 2: Margin and Growth Projections - Gross margins are expected to decline to 47.5% but are projected to improve sequentially in the March quarter as services contribute a larger share of sales [8]. - Long-term potential for margins is seen above 50% [9]. Group 3: Market Sentiment and Stock Performance - Apple's stock gained 10% last year but underperformed compared to the broader market's 20% gain, highlighting a disconnect between sentiment and fundamentals [3][5]. - The recent partnership with Google is viewed as a validation moment for Apple, positioning it for future AI advancements [4]. - Bank of America maintains a strong buy rating on Apple with a price target of $325, indicating nearly 25% upside from current levels [4].

Core Insights - Alphabet Inc. has expanded its partnership with Nvidia Corp to deploy Nvidia's Blackwell-based AI systems through Google Cloud, targeting advanced enterprise and government workloads [1][4]. Group 1: Google Cloud and Nvidia Partnership - Google Cloud is one of the first cloud providers to offer Nvidia's Blackwell AI platform, providing access to next-generation GPUs and rack-scale systems for demanding workloads [2]. - The infrastructure includes accelerator-optimized virtual machines such as A4X, A4, and G4, aimed at powering large-scale AI models and scientific simulations [3]. Group 2: Focus on Security-Sensitive Sectors - The partnership emphasizes regulated sectors, allowing organizations to run Google's Gemini AI models on-premises, supporting confidential computing to protect data and AI models [4]. - This setup is particularly beneficial for government, healthcare, and financial institutions that require stringent data protection [4]. Group 3: Integration and Applications - Nvidia's AI platform is integrated across Google Cloud services, including Vertex AI and Google Kubernetes Engine, enabling developers to train and deploy AI applications at various abstraction levels [5]. - The collaboration also focuses on open frameworks and models, with applications in robotics, drug discovery, energy grid optimization, and digital twin simulations [6]. Group 4: Market Performance - Alphabet's Class A shares increased by 1.24% in regular trading and 0.38% in after-hours trading, while Class C shares rose by 1.11% and 0.46% respectively [7]. - Nvidia shares gained 0.47% during the regular session, closing at $185.81, before a slight decline in after-hours trading [7].

Core Insights - Google stock experienced a significant increase following Apple's announcement of a multi-year partnership to integrate Google's Gemini AI models into Siri and other Apple Intelligence features [1] Company Impact - The partnership is expected to enhance Apple's AI capabilities by leveraging Google's advanced AI technology, potentially leading to improved user experiences across Apple devices [1] - This collaboration may position both companies favorably in the competitive AI landscape, as they combine their strengths to innovate and attract more users [1] Industry Implications - The integration of Gemini AI models into Apple's ecosystem signifies a growing trend of collaboration between tech giants to enhance artificial intelligence functionalities [1] - This partnership could set a precedent for future alliances in the tech industry, emphasizing the importance of AI in product development and user engagement [1]