After Thursday’s market close, Alphabet Inc. (GOOGL) will announce first-quarter earnings results. The company stands to benefit from artificial intelligence (AI) growth and seems undervalued. Should you buy now or await the earnings update? Let’s find out –  Alphabet’s Q1 Earnings Will Benefit From AI So far this year, Alphabet’s shares have plunged 20% as the broader market reeled under tariff pressure and the Google parent lagged behind its competitors in the AI race. However, the company’s revenues and ...

As we head into Alphabet's ((GOOGL) earnings report tomorrow, some of the biggest questions analysts will be asking on the conference call should surround Wiz and NVIDIA and those big plans I discussed in my earlier article.But there are two more issues burning like a GPU at OpenAI: their ad model in the age of LLMs and their (undesired) spotlight from the DOJ on antitrust action.It's fair to ask if Google’s advertising model is in jeopardy since Alphabet still generates the majority of its revenue from Sea ...

Alphabet ((GOOGL) just made its largest acquisition ever with the $32 billion bid for Wiz, an Israeli tech company focused on cloud security.Typically, Google has liked to build new technologies and platforms in-house, especially via their secretive "Skunkworks" R&D lab.So why did they spend more than all 20 previous acquisitions combined? What do they see in cloud security and how big will the synergies and payoffs be as they compete with market leaders AWS and Azure?Preparing for a New Threat AtmosphereSu ...

Alphabet’s (GOOGL) first-quarter 2025 results, scheduled to be released on April 24, are expected to benefit from solid momentum in search and cloud businesses. Alphabet’s initiatives to deploy artificial intelligence (AI) and infuse AI in search are noteworthy. Circle to Search is driving additional search and is gaining popularity among young users. This is expected to have driven advertising growth in the to-be-reported quarter.The Zacks Consensus Estimate for advertising revenues is currently pegged at ...

Group 1 - Gemini, Google's AI chatbot, had 350 million monthly active users globally as of March, showing significant growth from 9 million daily active users in October 2024 to 35 million daily active users recently [1] - Despite its growth, Gemini still trails behind leading AI tools like ChatGPT, which had approximately 600 million monthly active users in March, and Meta AI, which was nearing 500 million monthly users [2] - The widespread adoption of Gemini can be attributed to its integration with various platforms, including Samsung phones, Google Workspace applications, and Chrome, enhancing its visibility and user engagement [3]

Core Viewpoint - Alphabet is currently facing an antitrust case, but its stock prices rose nearly 3% due to speculation about a potential sale of its Chrome browser to OpenAI, a leading AI developer [1][2][3]. Group 1: Antitrust Case and Market Reaction - Investors reacted positively to the news of a potential acquisition of Chrome by OpenAI, which could provide a solution to Alphabet's legal challenges [1]. - The stock price of Alphabet increased by almost 3% on the second trading day of the week amid the ongoing antitrust trial [1]. Group 2: OpenAI's Interest in Chrome - During the antitrust court session, OpenAI's head of product, Nick Turley, indicated that OpenAI could be interested in purchasing the Chrome browser [2][3]. - The Department of Justice has raised concerns about Alphabet's alleged monopoly in search, which could give it an unfair advantage in the competitive AI landscape [4]. Group 3: Implications of a Chrome Sale - The sale of Chrome could potentially address the government's antitrust concerns and may be part of a settlement strategy [5]. - Chrome serves as a significant platform for Alphabet, being the default search engine for many users, which could make its sale a strategic move [5]. Group 4: Relationship with Microsoft - OpenAI, while independently operated, has received substantial investments from Microsoft, which has its own search engine, Bing [6]. - If OpenAI acquires Chrome, Bing could become the default search engine for the browser, further impacting the competitive dynamics in the search market [6].

Core Viewpoint - The ongoing antitrust hearing against Google could significantly alter how tech companies operate and how users conduct online searches, with potential remedies including the sale of Chrome and support for rival search engines [1][2]. Group 1: Antitrust Case Details - The U.S. Justice Department argues that Google should be compelled to sell its Chrome browser, which they claim unfairly promotes its search engine [1][2]. - Google’s legal team contends that its market position was achieved through legitimate agreements with companies like Apple and Samsung, asserting that it did not engage in monopolistic practices [3]. - Judge Amit P. Mehta, who previously ruled that Google maintained an illegal monopoly, is presiding over the case, with testimonies from major tech executives expected [4][5]. Group 2: Market Position and Competition - Google currently holds over 89% of the global search market share, a slight decrease from 91% the previous summer [6]. - OpenAI has expressed interest in acquiring Chrome if Google is mandated to sell it, highlighting the competitive landscape in the tech industry [8]. - The potential outcomes of the case could include breaking up parts of Google, such as Chrome or Android, marking a significant government effort to address illegal monopolization [9]. Group 3: Broader Implications - The case against Google is part of a larger trend, with other major tech companies like Apple and Amazon also facing antitrust scrutiny [11]. - The outcome of this case could influence the future of artificial intelligence, as the Justice Department warns that without intervention, Google may leverage its AI products to further entrench its market dominance [11]. - The hearings reflect a shift in regulatory focus under the current presidential administration, indicating increased scrutiny of the tech industry [12].

Core Viewpoint - Alphabet's upcoming Q1 earnings report is highly anticipated amid ongoing antitrust pressures and a significant decline in stock price, raising questions about potential investment opportunities [2][4]. Group 1: Financial Performance Expectations - Alphabet's Q1 sales are projected to reach $75.53 billion, reflecting a 12% increase from $67.59 billion in the same quarter last year [4]. - The expected Q1 EPS is $2.01, a 6% increase from $1.89 per share a year ago [4]. - Alphabet has consistently exceeded EPS expectations for eight consecutive quarters, with an average earnings surprise of 11.57% in the last four quarters [4][5]. Group 2: Stock Valuation and Market Position - Alphabet currently has the lowest P/E valuation among the "Magnificent 7" tech stocks, trading at a forward earnings multiple of 16.9X, compared to the S&P 500's 19.8X [6]. - The next lowest P/E valuation in the group is Meta Platforms at 19.9X, while Tesla has the highest at 87X [6]. Group 3: Analyst Recommendations and Price Targets - The average price target for Alphabet stock is $202.06, indicating a potential upside of 37% from current levels [8]. - Alphabet has an average brokerage recommendation (ABR) of 1.40, suggesting a "Strong Buy" sentiment based on 53 brokerage firms [9][10]. - The number of "Strong Buy" recommendations has increased from 36 to 41 over the past three months, indicating growing confidence among analysts [10]. Group 4: Future Outlook and Risks - The upcoming Q1 report is critical, as further declines in EPS revisions could lead to a sell rating, while positive revisions may prompt a buy rating [11]. - Despite current challenges, Alphabet's EPS outlook remains attractive, although earnings estimate revisions for fiscal 2025 and FY26 have trended downward [11].

Key Takeaways Alphabet helps headline the reporting docket this week. Shares have become considerably cheap amid the recent weakness. Alphabet's near-term EPS outlook remains cloudy. The beloved Mag 7 group has cooled off in a big way over recent months after big multi-year runs, raising some eyebrows among investors.While the group’s performance in 2025 has left much to be desired, consistently strong top and bottom line growth gives them staying power for many years to come.And this week, a member of th ...

Google’s Chrome browser would have many potential buyers if it were spun off, with OpenAI among them, an OpenAI executive told a court Tuesday (April 22).Testifying during a trial that will determine remedies for Google’s dominance of the search market, as required by a judge’s ruling last year, OpenAI’s Head of Product, ChatGPT Nick Turley said OpenAI and “many other parties” would try to buy Chrome if it were available, Bloomberg reported Tuesday.ChatGPT can be downloaded as an extension for the Chrome br ...