Alphabet (GOOG, GOOGL) 02 (Aug 17 - Dec 25)

[behappyalways]

Visualizing What The World Googled In 2024
https://www.zerohedge.com/geopolitical/ ... ogled-2024

[behappyalways]

From Street View To AI — How Google Maps Mapped The World
https://m.youtube.com/watch?v=bk-oTa4p4Fc

[winston]

not vested

Google shares slide on spending plans despite sales jump

Alphabet reported robust fourth-quarter results on Tuesday, with revenues jumping 12 per cent to US$96.5 billion but analysts saw reason for concern in costs associated with artificial intelligence.

Google Cloud, while growing 30 per cent to US$12 billion, fell short of expectations, raising questions about the division’s ability to compete with rivals in the heated cloud computing and AI infrastructure market.

Looking ahead, Alphabet announced plans to invest approximately US$75 billion in capital expenditures in 2025, a figure that surprised analysts and highlighted the mounting costs of AI development.

Source: Reuters

https://www.businesstimes.com.sg/compan ... sales-jump

[winston]

vested

Alphabet Inc (GOOGL US / GOOG US) - Higher CAPEX to support AI capabilities

Alphabet dominates the online search market, with Google capturing over 90% of the global share and over 80% of the US share.

We expect Google to maintain its leadership position in the search space.

Alphabet operates various segments such as Google Services, Google Cloud, and Other Bets.

The Google Services segment includes a range of products and services such as advertisements (ads), Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

The Google Cloud segment consists of Google Cloud Platform (GCP), Google Workspace, and other enterprise services.

Within its Google Cloud Platform, the company offers solutions such as cybersecurity, databases, analytics, and AI offerings, including their AI infrastructure, Vertex AI platform, and Duet AI for Google Cloud.

As for Google Workspace, it comprises cloud-based communication and collaboration tools for enterprises, including calendar, Gmail, Docs, Drive, Meet, and other enterprise services.

The Other Bets segment focuses on selling healthcare-related services and internet services. BUY.

Source: OCBC

[winston]

Alphabet Inc (GOOGL US / GOOG US) - Higher CAPEX to support AI capabilities

Relatively solid 4Q24 results driven by Search and YouTube, offset by Network and weaker-than-expected Cloud

Positive commentary on key artificial intelligence (AI) initiatives

Staying focus on the longer term. Reiterate Buy rating and revising up fair value to
USD233 (from USD211)

Source: OCBC

[behappyalways]

Alphabet Tumbles On Cloud, Revenue Miss; Expects Surge In 2025 CapEx
https://www.zerohedge.com/markets/alpha ... 2025-capex

[winston]

vested

On Tuesday, Alphabet reported fourth-quarter earnings per share of $2.15, an increase of 31.1% compared to earnings of $1.64 per share a year ago. This also beat analysts’ earnings expectations for $2.13 per share.

Revenue climbed 11.8% year-over-year to $96.5 billion, up from $86.3 billion in the same quarter a year ago. Analysts had called for $96.7 billion.

Cloud revenues increased 30% year-over-year to $11.9 billion but missed expectations for $12.1 billion.

YouTube ad revenue came in at about $10.5 billion, besting analysts’ estimates for $10.2 billion and growing 13.8% year-over-year.

Translation: Pichai doesn’t seem to think DeepSeek is a major threat, also noting that there is plenty of room for new use cases for AI.

He also said that Google Cloud customers use eight times the computing capacity for training and inferencing than they did a year and a half ago.

That may sound like good news, but it also helps explain why the company will be investing roughly $75 billion in capital expenditures for the year. This is not only up 43% from last year, but also well above Wall Street’s projections for $59 billion.

Source: Investor Place

[winston]

vested

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has tumbled 18.4% in the past month. This is mainly due to fears that AI chatbots will have a negative impact on Google’s search volume.

However, it seems like an overreaction since Google itself is making some solid progress with its own AI models.

It also trades at just 19 times forward earnings, which is pretty cheap compared to most other AI stocks.

Alphabet owns the world’s two most popular websites by traffic volume, and analysts expect its EPS to grow by 11.8% this year, along with an 11.4% revenue growth.

I believe GOOG stock is a solid long-term buy as the AI hype rally didn’t drive it up to dangerously overvalued levels, and any pullback is unlikely to be as extreme.

The consensus price target of $209.13 implies 23.21% upside.

Source: Money Morning

[winston]

not vested

Alphabet: Historical Discount and Huge Growth Opportunities

Alphabet remains a fundamental pillar of the digital economy, with its core business, Google Search, continuing to deliver steady sales and earnings growth despite investor concerns that AI could disrupt traditional search volume.

In reality, Alphabet is proactively integrating AI into its ecosystem, with early data suggesting that AI-powered search summaries are enhancing user engagement rather than eroding traffic.

The company has also teased a next-generation AI search product, reinforcing its commitment to staying at the forefront of innovation in online search.

Beyond search, Alphabet has several underappreciated growth engines, the most notable being Waymo, its self-driving car subsidiary.

While many competitors in autonomous driving are still in testing phases, Waymo is already operating at scale, providing over 200,000 rides per week. As the technology advances and expands into more cities, Waymo could become a major profit center that is barely factored into Alphabet’s current valuation.

Alphabet is also a key player in cloud computing, where Google Cloud is growing at an impressive 30% annually. With increasing demand for AI-driven workloads and enterprise cloud services, Google Cloud is becoming an increasingly important driver of the company’s overall revenue growth.

Despite these powerful long-term growth catalysts, Alphabet is trading at a historical discount. The stock’s 10-year median forward P/E ratio is 25.8x, yet it currently trades at just 19.4x forward earnings.

With earnings expected to grow at 15.5% annually over the next three to five years, this valuation compression presents a compelling opportunity for investors looking for both stability and upside.

Source: Zack's

[winston]

vested

Nasdaq Correction: Why I Took Advantage of a 20% Sell-Off to Buy More of This Magnificent 7 Stock.

by Matt DiLallo

Forward P/E ratio of a little more than 18 times is also cheaper than the broader market.

Revenue rose 15% last year to $350 billion, while its net income surged more than 35% to $100 billion.

Google Cloud revenues surged 30% in that quarter to $12 billion.

It plans to invest $75 billion into capital expenditures this year, up from $52.5 billion last year.

Source: The Motley Fool

https://finance.yahoo.com/news/nasdaq-c ... 00693.html