Middle Coast Investing, an investment advisor firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for Middle Coast Investing. Its collective portfolio outperformed the S&P 500 and is ahead of benchmarks year to date. In Q3 2025, the US Portfolios returned 9.6% compared to 7.8% for the S&P 500. It’s Core U.S. portfolios returned 10% while the Russell 2000 returned 12%, the S&P 600 returned 8.7% and the Nasdaq generated 11.2% for ...

Core Viewpoint - Alphabet Inc. (NASDAQ:GOOG) is viewed positively by analysts, particularly regarding its leadership in the AI space and its resilience against competition from OpenAI and other AI alternatives [1][2]. Group 1: Market Position and Performance - Alphabet Inc. continues to lead in the AI sector, with analysts believing that concerns about the impact of OpenAI on its advertising business are overstated [1][2]. - The company has over 1.5 billion monthly users engaging with its AI-powered Search, providing a significant competitive advantage [2]. - Despite a marginal share price decline over the year, Alphabet's performance has been below the average portfolio return, raising concerns about its monopolistic position in Search being challenged by new AI alternatives [3]. Group 2: Competitive Landscape - Analysts assert that Google's existing user base makes it easier for users to transition to its AI features, such as Gemini, rather than switching to entirely new models [2]. - OpenAI's GPT-5 model has not met market expectations, while Gemini is gaining traction with new features, indicating a competitive edge for Alphabet [2]. - Alphabet's extensive user distribution across nine products, each with over 1 billion users, positions it well against potential threats from AI competitors [4].

Core Viewpoint - MoffettNathanson believes Alphabet (GOOG) (GOOGL) should surpass Nvidia (NVDA) as the world's most valuable company, raising its price target for GOOGL stock to $295, indicating a 20% upside from current levels [1] Group 1: Competitive Advantages - Alphabet is seen as the leader in the AI race due to its strengths in multimodal search, accelerating cloud growth, improved YouTube monetization, and the developing Waymo business [1] - Google's regulatory challenges are diminishing, with a recent antitrust ruling being less severe than anticipated [2] - Concerns regarding ChatGPT are overstated, as initial data suggests AI chatbots are enhancing search usage rather than replacing it [2] Group 2: Cloud and AI Growth - Google Cloud is projected to achieve a 33% growth by 2025, with nine of the top ten AI labs utilizing its platform [3] - Google Cloud generates $50 billion in annual revenue, positioning it competitively against Amazon's AWS and Microsoft's Azure [5] - Google processes twice as many AI tokens as other cloud providers in half the time, showcasing its significant volume advantage [6] Group 3: Monetization and Future Prospects - YouTube is on the verge of a monetization breakthrough, aided by new AI tools that will enhance brand partnerships and commerce features [4] - Waymo presents a long-term growth opportunity as it expands operations across U.S. cities [4] - Despite recent stock gains, GOOGL remains relatively undervalued compared to its historical performance and peers [4]

We recently published Analysts Are Talking About These 10 Stocks as AI Investments Continue to Grow. Alphabet Inc (NASDAQ:GOOG) is one of the stocks analysts were recently talking about. Mark Mahaney, Evercore ISI head of internet research, said in a recent program on CNBC that Alphabet Inc (NASDAQ:GOOG) is positioned well to gain following the recent court ruling that the company will not need to sell its Chrome business. The analyst explained why he believes the stock is undervalued: “First the core ca ...

Alphabet could become the largest company in the world in the next five years.Alphabet (GOOG 0.21%) (GOOGL 0.28%) has become one of the world's most important artificial intelligence (AI) companies. What investors initially saw as a big potential risk has instead turned into a big tailwind.And while Nvidia and Palantir Technologies get plenty of the hype these days, Alphabet has the opportunity to be worth more than both of them combined before the decade is out.Nvidia currently sits at a $4.3 trillion mark ...

Core Viewpoint - Alphabet's stock is currently undervalued compared to its peers in the "Magnificent Seven," presenting a potential investment opportunity as it navigates antitrust concerns and capitalizes on growth prospects in AI and autonomous vehicles [1][4][12]. Valuation and Market Position - Alphabet has been trading at a price-to-earnings (P/E) multiple below 20, significantly lower than the S&P 500 average of over 25 [4]. - Despite recent stock rallies, Alphabet remains the cheapest stock in the "Magnificent Seven," with a current P/E multiple around 27 [5]. Growth Potential - Alphabet generated $186.7 billion in revenue in the first half of 2025, marking a 13% increase year-over-year, while net income rose by 33% to $62.7 billion [8]. - The company’s AI chatbot, Gemini, boasts around 400 million monthly users, leveraging YouTube content for model training, positioning Alphabet favorably in the AI landscape [9]. - Alphabet's Waymo autonomous taxi service has completed 10 million robotaxi trips, indicating significant growth potential in the self-driving vehicle market [10]. Strategic Outlook - The company has numerous growth opportunities, suggesting that even potential divestitures could unlock value and lead to a reassessment of its individual business units [11]. - With a market cap recently hitting $3 trillion and shares up over 30% year-to-date, Alphabet is viewed as a strong long-term growth stock [12][13].

Ken Griffin of Citadel just made a bold proclamation about Alphabet's size in the artificial intelligence (AI) realm.Ken Griffin, the billionaire hedge fund manager and CEO of Citadel, recently turned heads after making a striking observation about Alphabet (GOOG 0.21%) (GOOGL 0.28%). During an interview at Stanford Business School, Griffin proclaimed that Alphabet wields comparable levels of computational power as the fifth-largest country in the world.This is not mere hyperbole. Griffin's remark underscor ...

Key Takeaways Nissan began demos of its next-gen ProPILOT assisted driving system in Tokyo this month.The new system pairs Ground Truth Perception with UK startup Wayve's AI Driver.Planned rollout in 2027 includes an autonomous ride-share service in Japan.The race to develop autonomous vehicles (AVs) is entering an exciting phase. Automakers and tech giants alike are pouring billions into self-driving technology. Japanese auto giant Nissan Motor Co. (NSANY) began demonstrations of its next-generation ProPIL ...

Core Viewpoint - Alphabet has experienced significant stock price appreciation following a favorable court ruling, with potential for further growth driven by advancements in AI technology and its various business segments [1][2]. Group 1: Stock Performance and Market Capitalization - Alphabet's shares rose nearly 20% in September and 34% year-to-date, pushing its market capitalization over $3 trillion [2]. - The stock trades at 25 times earnings, which is relatively inexpensive compared to other AI-focused companies [2]. Group 2: AI Innovations and Product Enhancements - The introduction of Gemini has accelerated Alphabet's innovation, with AI Overviews and "AI Mode" enhancing the Search experience [4][5]. - Gemini 2.5 is recognized as a leading model in the industry, outperforming competitors like OpenAI [6][7]. - Upcoming features in the Chrome browser will integrate Gemini capabilities, enhancing user experience and expanding Alphabet's distribution power [8][9]. Group 3: Google Cloud Growth - Google Cloud has become the third-largest cloud infrastructure provider, with a 31.7% growth in the last quarter and a 141% increase in operating profits [10][11]. - The cloud division reached profitability in 2023, with a projected operating profit run-rate of nearly $12 billion [13]. - By 2030, Google Cloud could generate $150 billion in revenue and $50 billion in operating profit, potentially valuing the unit at $1 trillion to $2 trillion [14]. Group 4: Waymo and Autonomous Vehicles - Waymo is leading in the self-driving robotaxi market, operating in multiple cities and planning further expansion [15][16]. - The autonomous rideshare market is expected to grow at a 90% annualized rate through 2030, with significant profitability potential [17]. - Waymo's growth strategy includes partnerships with demand aggregators to enhance adoption and establish trust in autonomous mobility [16][18].

Ya I’ll never take an Uber over a Waymo again if given the choice ...