RT Dash (@Dashpay)Google search terms for Dash have reached their highest point since 2018, and Dash Evolution is at its highest ever! 👀Word is starting to get out that we've built something really incredible.Comeback season is in full effect! 💪 https://t.co/QwpFbuSrl8 ...

Google search is dead.I only use Grok. https://t.co/BgNNqI86z4 ...

Grok gets straight the point when you ask for help.No ads or random rankings. Google search is dead ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported Q2 2025 earnings that significantly exceeded expectations, with total revenue of $96.4 billion (yoy +13.8%), GAAP operating profit of $31.3 billion (yoy +14.0%), and GAAP net profit of $28.2 billion (yoy +19.4%) [6] - The annual capital expenditure (CapEx) has been raised by $10 billion to $85 billion, with two-thirds of the funds allocated for server purchases, indicating continued investment in cloud computing [7] - The company's core business growth is driven by AI, with search advertising returning to double-digit growth despite competition from AI products [7] Summary by Sections Financial Performance - Q2 2025 revenue was $96.4 billion, surpassing Bloomberg's expectations by 2.62% - GAAP operating profit reached $31.3 billion, exceeding expectations by 0.65% - GAAP net profit was $28.2 billion, exceeding expectations by 5.38% [6] Business Segments - Google Services generated $82.5 billion (yoy +11.7%), with search revenue at $54.2 billion (yoy +11.7%) and YouTube ad revenue at $9.8 billion (yoy +13.1%) [6] - Cloud revenue reached $13.6 billion (yoy +31.7%), exceeding expectations by 3.65% [6] Capital Expenditure - Q2 2025 CapEx was $22.4 billion, higher than the expected $18.2 billion - Full-year CapEx guidance increased to $85 billion from $75 billion, with a focus on cloud computing investments [7] AI and Business Growth - Search business showed resilience with paid clicks growing by 4% due to AI integration - Monthly token processing volume doubled to over 980 trillion tokens, with Gemini application users exceeding 450 million [7] - Cloud business ARR surpassed $50 billion, with operating profit margin improving from 17.8% to 20.7% [7] Revenue and Profit Forecast - Projected revenues for 2025-2027 are $395.6 billion, $444.3 billion, and $497.8 billion, respectively, with net profits expected to be $121.4 billion, $129.6 billion, and $142.2 billion [8]

Generative AI & Technology Disruption - Google faces disruption risk from generative AI like ChatGPT, impacting search revenue as it transitions to an AI-driven model [1][2] - The market is watching Google's capex spend and the resulting innovation in AI [2] - IBM leverages its consulting arm as "customer zero" to implement and teach AI to clients, improving business returns through M&A [3][4] Autonomous Driving & Innovation - Tesla's autonomous driving, particularly its AI-first, camera-first approach, is a key differentiator, with potential for robo-taxi success [4] - Tesla's innovation pipeline and its potential to expand the Total Addressable Market (TAM) in AI and robotics are more critical than short-term car sales figures [4][5] Semiconductor Industry - The semiconductor sector has experienced a significant run-up, leading to higher expectations in the near term [6] - While TI and XBI are guiding to improving industrial fundamentals, the market is questioning whether valuations have outpaced fundamentals [6][7] - China, previously a tailwind, could become a headwind or a flat market for industrial semiconductors [7] Intel Turnaround - Intel's turnaround is idiosyncratic, requiring fixing the architecture versus node issue [8] - The market is eager to hear about the new CEO's priorities for getting the product roadmap back on track, attacking AI, and stabilizing the balance sheet [8]

Core Viewpoint - Alphabet is currently undervalued despite fears surrounding its core business being disrupted by generative AI, as it continues to show strong growth in various segments [1][10]. Group 1: Alphabet's Business Performance - Alphabet's core business, primarily driven by Google search, remains robust, generating significant cash flow that supports other ventures [3]. - Concerns about generative AI replacing Google search have not materialized, with Google search revenue increasing by 10% year over year in Q1 [4][6]. - Google Cloud, another key division, experienced remarkable growth with a 28% year-over-year revenue increase in Q1, and its operating margin nearly doubled from 9.4% to 17.8% [7]. Group 2: Stock Valuation - Alphabet's stock is trading at 17.4 times forward earnings, significantly cheaper than the S&P 500's 22.8 times forward earnings, indicating it is undervalued [9]. - The company's revenue and diluted earnings per share grew at rates of 12% and 49%, respectively, during the first quarter, suggesting strong performance [8]. - The combination of market-beating growth and a below-market price makes Alphabet a compelling investment opportunity [10].

Market Trend - The report suggests a potential decline or disruption in Google search's dominance [1] - The report highlights the emergence of "Just Grok" as a possible alternative or competitor [1]