The 'Fast Money' trader talk Google surging into earnings.
Alphabet's Google and OpenAI said their artificial-intelligence models won gold medals at a global mathematics competition, signaling a breakthrough in math capabilities in the race to build powerful systems that can rival human intelligence.
We get into the heart of the Q2 earnings season this week, with more than 400 companies on deck to report results, including 109 S&P 500 members. So far, the Q2 cycle is off to a strong start.
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GOOGL's scale and profits clash with NBIS' explosive growth. See which AI infrastructure stock comes out on top.
Alphabet's integrated AI infrastructure—custom TPUs, proprietary software, and unmatched data quality—creates a compounding competitive advantage across all business lines. Q1 results show 12% revenue growth and 20% operating income growth, with expanding margins and exceptional EPS acceleration, highlighting operational leverage and efficiency. Despite near-term growth moderation, Alphabet's diversified revenue streams, cost discipline, and AI-driven innovation support sustained high profitability and margin resilience.
Key Takeaways
GOOGL's recent underperformance is largely due to slower advertising growth, a relatively muted capex outlook, and higher D&A, which could pressure earnings. Despite the gradual pace of AI monetization in advertising, Google Cloud delivered strong growth and continued margin expansion in 1Q. The valuation gap between GOOGL and META reflects Meta's stronger ad growth and more aggressive FY2025 capex, 36% of total revenue, vs 19% for GOOGL.
I added additional shares of Alphabet, PepsiCo, and the Schwab U.S. Dividend Equity ETF to The Dividend Income Accelerator Portfolio to optimize our portfolio's risk-reward, income, and growth balance. Alphabet's attractive valuation, low payout ratio, and strong earnings growth boost our portfolio's dividend growth and capital appreciation potential. PepsiCo combines dividend income and dividend growth, enhancing our portfolio's income and stability.
AI is a main theme of second-quarter earnings as Alphabet reports this week. Tesla, Mattel, Hasbro and Coca-Cola also report, as Trump policies remain top of mind.
Companies with a market cap above $1 trillion are in a class of their own. They all have terrific businesses and have generally produced market-beating returns for years.
India's Enforcement Directorate agency, which probes economic crimes, has summoned representatives from Google and Meta to appear on Monday in connection with a case involving betting apps, ANI news agency reported on Saturday, citing official sources.