From personalised recommendations to automated workflows, AI has moved from a nice-to-have feature to a core technology. And, few companies are as deeply integrated into this shift as Alphabet Inc. (NASDAQ: GOOG). AI has already been woven into the company’s platforms that are used by billions of people everyday. From Google Search and YouTube advertising, to cloud services used by businesses worldwide. Although the AI excitement has pushed up valuations across the tech sector, Alphabet has yet to be re-rat ...

Google Stock (NASDAQ:GOOG) trades around $314 USD per share, with a 52-week range of $142.66–$350.15 USD and a market value near $3.82 trillion USD. The stock sits on a trailing P/E of ~29x and a dividend yield of about 0.27%, essentially priced at the S&P 500's ~29x earnings while delivering far stronger growth and return metrics than the index average. 2025 revenue broke above $400 billion USD, with Q4 sales at $113.8 billion USD, up roughly 18% year on year, and growth accelerating from low double digits ...

Renaissance Technologies trimmed its Alphabet position in Q4 of 2025 by a big margin. The quantitative trading giant, founded by the late mathematician Jim Simons, slashed its Alphabet (GOOGL) stock stake by 88.6% in the fourth quarter of 2025, according to Tikr.com, selling down to just 296,470 shares worth roughly $93 million. That means the firm unloaded a position that was once worth close to $800 million. For a stock that gained 65% in 2025, its best year since 2009, per CNBC, the timing is notable ...

Key Takeaways GTLB grew customers with $100K ARR, up 23% YoY in Q3 fiscal 2026, signaling enterprise traction. GitLab's AWS collaboration targets secure DevSecOps for regulated and public sectors. GTLB shares plunged 41.7% in six months despite projected 24.66% revenue growth for fiscal 2026. GitLab’s (GTLB) expanding clientele and its market leadership in the DevSecOps platform category are contributing to its growth prospects.GitLab’s platform is increasingly being adopted by a diverse range of organizati ...

Every weekday, the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Monday' s key moments. 1. Stocks fell Monday after President Donald Trump said he's increasing global tariffs to 15%, from 10%, after the Supreme Court struck down his "reciprocal" tariffs Friday. "The confusion about the tariffs and what will happen is a lot different from the confusion that we're having when it comes to valuing tech," said Jim Cramer, noting that market uncertain ...

Core Insights - Microsoft reported strong fiscal second-quarter 2026 earnings, with revenues of $81.3 billion, a 17% year-over-year increase, and operating income rising 21% to $38.3 billion, but concerns over capital expenditure led to a nearly 5% drop in stock price after hours [1][2] Financial Performance - For the quarter ended December 31, 2025, Microsoft achieved revenues of $81.3 billion, a 17% increase year-over-year, and operating income of $38.3 billion, up 21% [2] - Non-GAAP earnings per share were reported at $4.14, indicating solid performance by conventional measures [2] Capital Expenditure - Capital expenditures and finance leases for the quarter reached $37.5 billion, a significant 66% increase from the previous year, exceeding market expectations [3] - The first half of fiscal 2026 saw total capital expenditures of $72.4 billion, suggesting an annual infrastructure spending trajectory of approximately $100 billion [3] - Two-thirds of the second-quarter capital expenditure was allocated to short-lived assets, primarily GPUs and CPUs, while the remainder was directed towards long-lived infrastructure [3] Market Dynamics - Microsoft acknowledged that customer demand continues to exceed supply, with guidance indicating a slight decline in operating margins for the fiscal third quarter [4] - The cost of goods sold is expected to grow by 22% to 23%, and capital expenditure is projected to decrease sequentially in the third quarter [4] Backlog and Future Revenue Potential - The commercial remaining performance obligation stands at $625 billion, more than doubling year-over-year, with 45% linked to OpenAI commitments, indicating future revenue potential but also sustained infrastructure obligations [5] - Rising R&D costs contribute to stock sensitivity regarding the pace of AI infrastructure buildout relative to revenue conversion [5] Industry Comparisons - Microsoft is not alone in facing capital expenditure pressures; Amazon has guided for approximately $200 billion in capital expenditures for 2026, while Alphabet projects $175 billion to $185 billion, both companies experiencing similar investor scrutiny regarding infrastructure-heavy AI investments [6] Stock Performance and Valuation - Microsoft shares have declined by 21.2% over the past six months, outperforming the Zacks Computer – Software industry decline of 24.5% but underperforming the Zacks Computer and Technology sector's return of 10.6% [7] - The stock is currently trading at a forward 12-month Price/Sales ratio of 8.25X, compared to the industry's 6.92X, indicating a relatively higher valuation [10] - The Zacks Consensus Estimate for fiscal 2026 earnings is $16.97 per share, reflecting an 8.4% increase over the past 30 days and a year-over-year growth of 24.41% [13]

Core Viewpoint - Alphabet has significantly outperformed its peers in the "Magnificent Seven" over the past year, with a year-over-year increase of over 75%, while other major companies like Meta, Microsoft, and Amazon have seen declines [1]. Group 1: Stock Performance and Analyst Ratings - Alphabet's stock is currently trading higher, up 1.21% to approximately $315 [2]. - Wells Fargo has upgraded Alphabet, raising its price target to $387, which is considered optimistic compared to the average analyst targets of $350 to $370, implying a potential upside of 10% to 20% [5][6]. - The consensus among analysts remains strong, with no significant sell ratings noted [5]. Group 2: AI and Capacity Analysis - Wells Fargo emphasizes Alphabet's leadership in key AI traits: customer data, disruption, distribution, and compute capacity, suggesting that Alphabet can leverage these advantages for consumer and enterprise AI products [3]. - Alphabet's project to expand compute capacity to 35 gigawatts by 2028 from 15 gigawatts by the end of 2025 is highlighted as a significant competitive edge [4]. Group 3: Market Context and Competitive Landscape - The overall market sentiment is bearish, particularly regarding heavy AI capital expenditures, which may dampen near-term margin expansion for tech companies [9]. - Alphabet is viewed as a steady performer, with diverse revenue streams beyond just Google Cloud, providing more resilience compared to competitors like Meta [11][12].

Group 1: David Tepper's Investment Moves - David Tepper has significantly increased his positions in tech stocks, particularly in Meta Platforms, Alphabet, and Micron Technology, during the fourth quarter [1] - Tepper tripled his position in Micron to 1.5 million shares, indicating confidence in the company's growth potential as memory processors are sold out for the year [1] - The hedge fund Appaloosa Management, led by Tepper, holds only 45 stocks, making the movements in these positions particularly noteworthy [1] Group 2: Meta Platforms - Meta Platforms has seen a 2.04% increase in Tepper's stake, totaling 5.72% of his portfolio, with an addition of 230,000 shares [1] - The company reported fourth-quarter revenue of $59.89 billion, with an EPS of $8.88, surpassing estimates, and $58.1 billion of that revenue came from advertising [1] - For 2026, Meta is guiding for capital expenditures (CapEx) between $115 billion and $135 billion focused on AI infrastructure [1] Group 3: Alphabet Inc. - Tepper increased his stake in Alphabet by 28.7%, now holding approximately 1.8 million shares, which constitutes 8.10% of his portfolio [1] - Alphabet's revenue reached $113.83 billion, with Google Cloud growing 48% year-over-year to $17.7 billion, marking the first time annual revenues exceeded $400 billion [1] - The company plans to allocate $175 billion to $185 billion in CapEx for the year, primarily for AI infrastructure [1] Group 4: Micron Technology - Tepper's holdings in Micron increased from 500,000 shares to 1.5 million, now making up 6.18% of his portfolio [1] - Micron's stock has surged 348% over the year, with a current trading price of $428.17, driven by demand for AI memory [1] - The company reported fourth-quarter revenue of $13.64 billion and an EPS of $4.78, exceeding estimates, and is investing $200 billion to expand facilities to meet growing demand [1]

Core Insights - Alphabet is experiencing record revenues and accelerating growth in Google Cloud, driven by aggressive AI investment plans, but there are concerns about whether AI will enhance or undermine growth [1][3] Group 1: Google Search Developments - AI-generated answers are not reducing clicks on Google Search as previously feared; instead, they are driving greater usage and longer, more complex query sessions [4][6] - The Gemini family of large language models is improving ad matching with user intent, reducing irrelevant ads, and enabling monetization of complex queries [6][9] - Alphabet is testing new monetization strategies within AI Mode, including ads below AI-generated responses and a pilot program for exclusive merchant deals [7][8] Group 2: Google Cloud Growth - Google Cloud's revenue grew 48% year over year to $17.7 billion in Q4 2025, with a backlog of nearly $240 billion, up 55% sequentially [9] - The growth of Google Cloud in 2026 will depend on the pace of AI infrastructure expansion, with planned capital expenditures of $175 billion to $185 billion [10][11] - AI-focused Google Cloud customers utilize 1.8 times as many products as non-AI customers, indicating a potential for faster growth and a sticky customer base [11] Group 3: Financial Outlook and Margin Pressure - Rising capital spending may lead to higher depreciation and operating costs, potentially pressuring operating margins and profitability in 2026 [12] - Despite potential margin pressure, efficiency gains from Gemini AI have reduced serving unit costs, and record operating and free cash flow in 2025 provide flexibility for future investments [13]

Core Insights - Alphabet has transformed from being perceived as a laggard in artificial intelligence to a leader in the sector, particularly through its Google Cloud division [1][2] Financial Performance - Google Cloud reported a year-over-year revenue growth of 48% in Q4, significantly up from a 30% gain in Q4 2024, contributing nearly $59 billion in total sales for the year, which is 15% of Alphabet's total revenue [4] - The operating margin for Google Cloud reached 30% with an operating income of $5.3 billion, a substantial improvement from an operating loss of $480 million in Q4 2022 [8] Market Position - Google Cloud holds the third position in the overall cloud computing market, with its Q4 growth rate surpassing competitors like Amazon Web Services (24% growth) and Microsoft Azure (39% growth) [5] - The cloud market is experiencing robust demand for AI capabilities, benefiting from enterprises moving IT workloads off-site [5] Strategic Collaborations - Google Cloud has secured a partnership with Apple as their preferred cloud provider to develop next-generation Apple Foundation Models based on Gemini technology [6] Competitive Advantages - Google Cloud benefits from a clear cost advantage due to years of investment in technical infrastructure, allowing it to leverage fixed costs for higher margins as it continues to grow [9] - High switching costs for customers make it less likely for them to leave Google Cloud once they have transitioned their IT systems, enhancing its competitive position [10]