Google parent Alphabet (GOOG, GOOGL) became the fourth company to hit a market cap of $3 trillion Monday. The stock move comes after the company avoided the worst of the potential consequences in its antitrust trial, with federal district court Judge Amit Mehta ruling earlier this month that Google won't have to sell its Chrome browser. Google joins the likes of Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) in the $3 trillion space, though Nvidia has since climbed to $4 trillion on the strength of its ...

Core Viewpoint - Apple stock has declined 15% year to date, but Wall Street analysts remain optimistic ahead of the upcoming earnings report, with a median target price of $236 per share, indicating a potential 10% upside from the current price of $214 [1][2]. Group 1: Financial Performance - Apple reported a 5% increase in revenue to $95 billion and a 5% rise in GAAP net income to $24.8 billion [4]. - Earnings are expected to grow 1.4% to $1.42 per diluted share, with revenue projected to increase 3.6% to $88.9 billion for the upcoming quarter [12]. Group 2: Market Challenges - The company faces headwinds from tariffs, with potential import taxes posing a 7% risk to earnings if the U.S. imposes tariffs on India, Vietnam, and China [5]. - Concerns about Apple's artificial intelligence strategy persist, as analysts have noted a lack of consumer interest in AI features and delays in promised upgrades for Siri [6][7]. Group 3: Market Expectations - Wall Street has set a low bar for Apple's upcoming earnings report, with the company having historically beaten consensus estimates by an average of 2.5% over the past four quarters, yet shares fell by an average of 1.2% post-report [8]. - Options pricing indicates a potential 3.5% move in stock price following the earnings report, suggesting a closing range between $207 and $222 [9]. Group 4: Valuation Concerns - Despite the stock's decline, Apple remains expensive with a current valuation of 30 times earnings, leading to a PEG ratio above 5, which is traditionally considered overvalued [10]. - The company has not introduced a groundbreaking new product in over seven years, raising questions about its innovation capabilities and future stock performance without new catalysts [11].

A series of iPhone 16s on display inside the Apple store at Tun Razak Exchange in Kuala Lumpur, Malaysia, on Sept. 20, 2024. Britain's regulator focused on investigating Apple and Google's mobile operating systems, app store and browser. One aspect of the investigation looked at whether there are barriers that may prevent other competitors from offering rival products and services on the U.S. tech giants' mobile platforms. Another part of the probe examined whether Apple and Google are using their position ...

Core Insights - The article discusses the contrasting market outlooks for Palantir Technologies and Alphabet, both of which are leveraging AI for growth [1][2][3] Palantir Technologies - Palantir's AI Platform (AIP) has significantly boosted its growth, particularly among U.S. corporations, leading to a 54% increase in U.S. commercial revenue in 2024 and over 70% year-over-year growth in Q1 2025 [6][8] - Analysts have set a median price target of $100 for Palantir, indicating a potential 20% downside over the next 12 months, with only six out of 28 analysts rating the stock as overweight or buy [7] - Despite strong revenue growth, Palantir's valuation is extremely high, trading at over 75 times expected sales and more than 160 times forward EBITDA estimates, suggesting potential lower-than-average returns for investors [9] Alphabet Inc. - Alphabet has faced regulatory challenges, including a court ruling regarding its monopoly status in search technology, which may require divestitures of certain assets [10][11] - Despite these challenges, Google Search revenue grew by 10% year-over-year in Q1, driven by the integration of AI features that enhance user engagement and satisfaction [12] - Alphabet's Google Cloud business experienced a 28% year-over-year revenue growth in Q1, with an operating margin increase of 8.4 percentage points to 17.8%, indicating strong demand for its services [14] - The stock is currently valued at 18.2 times forward earnings estimates, presenting a favorable price for a company with diverse revenue streams and growth potential despite regulatory pressures [15]

Core Viewpoint - The Justice Department has filed multiple antitrust lawsuits against Google, alleging illegal monopolistic practices in both online search and ad tech software, with federal judges ruling against Google in both cases [1][3][6]. Group 1: Antitrust Lawsuits - In 2020, the Justice Department accused Google of operating an illegal monopoly in online search, claiming it entered into exclusionary agreements that restrict access to search engines [3][4]. - A federal judge ruled in August 2024 that Google engaged in illegal practices to maintain its monopoly in the internet search market, with proposed remedies including limiting Google's ability to pay for default search placements [4][5]. - In April 2025, another ruling found Google had an illegal monopoly in ad tech software, with allegations of anticompetitive conduct aimed at neutralizing competitors [6][8]. Group 2: Financial Implications - Despite the ongoing legal challenges, Wall Street estimates that Alphabet's earnings will grow at an annual rate of 12% through 2026, making its current valuation of 19 times earnings appear reasonable [10][11]. - Alphabet has consistently beaten consensus earnings estimates by 8% over the last six quarters, indicating strong financial performance despite legal uncertainties [11]. Group 3: Market Position and Risks - Google reportedly paid Apple $20 billion in 2022 to remain the default search engine in Safari, highlighting the financial stakes involved for both Google and its partners [3]. - Historical trends suggest that breakups resulting from antitrust lawsuits are unlikely, as seen in past cases like Microsoft in 2001 [10].