Janus Henderson Investors, an investment management company, released its third-quarter 2025 investor letter for its “Janus Henderson Global Technology and Innovation Fund”. A copy of the letter can be downloaded here. The technology sector generated strong results in the quarter, driven by the semiconductor complex and hardware makers, which outpaced the broader equities. The fund returned 9.19% in the quarter, compared to the S&P 500 Index’s 8.12% return and the MSCI All Country World Information Technol ...

Core Insights - Top hedge fund managers have significantly invested in Meta Platforms and Alphabet, with Meta's market value at $1.6 trillion and Alphabet's at $3.7 trillion, reflecting year-to-date stock increases of 13% and 64% respectively [1][2] Meta Platforms - Meta holds a strong position in digital advertising and smart glasses, being the second-largest ad tech company globally and leading in smart glasses shipments [4][6] - The company leverages artificial intelligence to enhance user engagement and ad conversion rates, with CEO Mark Zuckerberg highlighting improvements in content relevance through AI recommendation systems [5] - Analysts project Meta's earnings to grow at 17% annually over the next three years, with a median target price of $842 per share, indicating a potential 27% upside from its current price of $661 [8][9] Alphabet - Alphabet is the largest ad tech company, utilizing AI to enhance monetization of Google Search and YouTube, with significant increases in query volume and content optimization for influencers [9][10] - The company has developed the Gemini AI assistant, which has over 650 million monthly active users, positioning it as a strong competitor in the AI space [10] - Alphabet's Google Cloud is the third largest public cloud service, with a 34% increase in total cloud sales in the third quarter, driven by demand for AI chips and models, and projected revenue growth of 44% by 2026 [11][12] - Analysts expect Alphabet's earnings to grow at 15% annually over the next three years, with a median target price of $330 per share, suggesting a 6% upside from its current price of $310 [13][14]

Core Viewpoint - Alphabet has emerged as the top-performing stock among the "Magnificent Seven" in 2025, achieving a total return of 57% so far this year, recovering from earlier underperformance compared to competitors like Microsoft [1]. Group 1: Stock Performance and Market Position - Alphabet's stock is currently trading at a price of $315.68 with a market capitalization of $3.8 trillion and a price-to-earnings (P/E) ratio of 30, significantly higher than the 15 P/E ratio earlier this year [3][13]. - The stock has shown a daily change of +1.40% and has a 52-week price range of $142.66 to $328.67, indicating substantial volatility and growth potential [3]. Group 2: AI Market Share and Growth - Alphabet's Gemini AI model has gained a 13% share of the AI market in 2025, marking a significant increase from minimal usage, although it still trails behind competitors like ChatGPT [6]. - The company benefits from a cost advantage by utilizing its own data center infrastructure and computer chips for Gemini, making it more profitable compared to competitors like OpenAI and Anthropic [7]. - Despite spending approximately $25 billion quarterly on capital expenditures, Alphabet continues to generate positive free cash flow, allowing for self-funding of its AI expansion [8]. Group 3: Revenue Streams and Growth Drivers - Alphabet's revenue is currently growing at 15% year over year, supported by multiple revenue streams including YouTube, which generates over $10 billion in quarterly advertising revenue, and Google Cloud, which is growing at 34% year over year with over $15 billion in quarterly revenue [10][11]. - The main profit driver remains Google Search, contributing $50 billion in quarterly sales, indicating a robust and diversified revenue model [10]. Group 4: Future Outlook - The long-term earnings growth potential for Alphabet is strong, particularly if Gemini continues to capture market share in the AI sector [9]. - The rapid growth of earnings per share (EPS) is expected to bring down the P/E ratio over time, suggesting that Alphabet may still be a worthwhile investment for long-term holders despite its current high valuation [14].

Here’s how to give your holiday card an ’80s makeover right in Search: 1️⃣ Open the Google app. 2️⃣ Tap Lens. 3️⃣ Hit the 🍌, and use the prompt: “put me in an 80s christmas scene.” #GoogleGemini #GoogleSearch #NanoBanana ...

Generative UI in search is the ability for the model to create what the user needs in the format that is best for the users need at that time. It's generative, it's dynamic, it's on the fly, it's created in the moment. Based on what you asked for, it means that people don't have to hold back with their questions.They can ask more natural language, more complex questions. So the first thing that the model will do is it will take in your intent and it will analyze it. It will cross reference a number of diffe ...

Song: "St. Luke's" by Actual Magic. ...

Alphabet Inc. (NASDAQ:GOOGL) is one of the best forever stocks to buy according to hedge funds. On December 17, analysts at Citizens reiterated that Alphabet Inc. (NASDAQ:GOOGL) is a Market Outperform with a $340 price target. The positive stance is in response to Waymo’s third-quarter operational update. Alphabet Inc. (GOOGL) is a Buy at Citizens on Waymo Operational Progress as RBC Capital Downplays Real Estate Prospects The autonomous driving subsidiary says its cumulative rider miles increased by 28 ...

Alphabet's cash flows allow it to continue funding AI build-outs as it desires.Identifying which artificial intelligence (AI) stock has the most potential in 2026 and beyond is no simple task. If your time frame after 2026 is only a few years, then an AI infrastructure company like Nvidia may be the best option. If your time frame runs for a decade after 2026, you may be better off with a software company like Palantir.However, if you're looking for a combination of these two options, Alphabet (GOOG +1.55%) ...

Group 1: Market Trends and Investment Opportunities - Several companies are expected to thrive in 2026, particularly in the artificial intelligence (AI) sector, which may lead to significant returns for investors [1] - Three recommended stocks to buy now for 2026 are Alphabet, Taiwan Semiconductor Manufacturing, and Amazon, all of which are anticipated to outperform the market [2] Group 2: Alphabet (GOOG) - Alphabet has seen a remarkable performance in 2025, with a stock price increase of over 60%, driven by its core business, Google Search, and advancements in AI with its Gemini model [4] - Analysts project Alphabet's revenue growth to be nearly 14% in the upcoming year, which is notable for a mature business [6] - The company has transitioned from an AI laggard to a leader, which is expected to continue driving its stock price higher [7] Group 3: Taiwan Semiconductor Manufacturing (TSM) - Taiwan Semiconductor is the largest foundry globally by revenue and is crucial for high-end computing chips used in AI data centers [8] - The company is positioned well for 2026, with AI hyperscalers indicating record capital expenditures, making it an attractive investment [8][10] - Trading at less than 23 times next year's earnings, Taiwan Semiconductor is considered the cheapest option among the recommended stocks [10] Group 4: Amazon (AMZN) - Amazon's stock performance in 2025 has been flat, but this may set the stage for a recovery in 2026, supported by its growing business units [11] - Amazon Web Services (AWS) is the primary profit driver, with Q3 revenue growth at 20%, outpacing the overall company growth rate of 13% [13] - The advertising segment is also a key growth area, increasing by 24% in Q3, which contributes positively to Amazon's margins [14]

Core Insights - Alphabet's cloud computing segment, Google Cloud, is a significant growth driver, with Q3 operating income reaching $3.6 billion, an 85% increase year over year, and revenue of $15.2 billion, up 34% year over year [1][4] - The company's aggressive share repurchase strategy has contributed to a substantial increase in earnings per share, which rose over 35% year over year, while shares gained 62% year to date [2][3] - Alphabet's overall revenue growth has accelerated, with a 14% increase in Q2 2025 and a 16% increase in Q3 2025, alongside a net income of $35.0 billion in Q3 [3][4] Financial Performance - The combination of Google Cloud and Alphabet's core advertising business positions the company for significant future growth, potentially doubling its stock price by 2030 [4][10] - To achieve a stock price of approximately $614 by 2030, annualized earnings per share would need to reach around $24.60, implying a doubling of current earnings per share [7][8] - The company anticipates capital expenditures between $91 billion and $93 billion in 2025, which may pressure free cash flow in the short term [6] Growth Potential - Continued revenue growth at similar rates and controlled expense increases are essential for achieving the projected earnings growth [8] - The increasing role of AI in Alphabet's business enhances the plausibility of these growth assumptions [9] - If investments in cloud computing and AI yield faster revenue growth and margin expansion, the stock could potentially double [10]