Alphabet (GOOG, GOOGL) 03 (Aug 24 - Dec 27)

[winston]

not vested

4Q Results

For the fourth quarter, the company reported revenue of $113.8 billion in revenue, topping Wall Street’s expectations for $111.4 billion.

Earnings were $2.82 per share, higher than the $2.65 expected by analysts, and up from $2.15 in the previous year.

Growth was driven in large part by a 48% jump in Google Cloud revenue to $17.7 billion, which was driven in part by AI deals with Meta Platforms, Inc. (META), OpenAI (the company behind ChatGPT) and Anthropic (the company behind Claude). That was also well ahead of estimates for $16.2 billion.

Google Services – including Search and YouTube advertising – climbed 14% year over year.

Additionally, Alphabet surpassed $400 billion in annual revenue for the first time in its history. That was thanks to increasing search demand and the launch of its new Gemini 3 AI Model – which outperformed rivals like OpenAI and led to the company reportedly calling a “code red” as a result.

Yet despite these strong results, Alphabet’s shares fell as much as 5% on Thursday.

Why? Because the company is spending like a sailor in port – specifically on AI.

The bill? In the range of $175 billion to $185 billion in 2026. That’s roughly double last year’s spending, and Wall Street thought it was going to target about $120 billion in spending this year.

Judging by the market reaction, investors zeroed in on that rising spending figure, whether it’s sustainable and what it could mean for profitability in the years ahead.

Source: Market 360

[winston]

Michael Burry Compares Alphabet Issuing Century Bonds to Motorola, Suggests Greater Crisis Ahead for Alphabet

Michael Burry, the hedge fund manager and the real-life inspiration for the movie "The Big Short", responded on social media regarding Alphabet (GOOGL.US) which is seeking to issue century bonds.

The last similar event occurred in 1997, when the mobile phone manufacturer Motorola issued bonds, he said.

At that time, Motorola was among the top 25 companies in the US by market cap and revenue, with its brand ranking even ahead of Microsoft (MSFT.US) , said Burry.

Burry pointed out that in the years following the bond issuance, Motorola's status gradually subsided and was surpassed by competitors.

Today, it ranks 232nd in market cap, with annual sales of only USD11 billion.

In his post, Burry believed that the threats in face of Google's classic search technology today are real and potentially even greater than the crisis Motorola faced in the mid-1990s when hardware technology was considered a more reliable competitive advantage than software.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

Google's Stake In SpaceX Could Be Worth $122 Billion At IPO
https://www.zerohedge.com/markets/googl ... illion-ipo