Google’s Growth Engine Roars: Is It Time To Invest?
📈 Alphabet showcased spectacular double-digit revenue growth and record operating income, demonstrating exceptional performance for a company of its scale.
☁️ Google Cloud is rapidly expanding, growing nearly 30%, and significantly boosting its profitability, marking key steps in diversifying revenue streams.
💰 Despite heavy investments in AI infrastructure, Alphabet maintains an attractive valuation (around 17x estimated 2025 net earnings) and returns value through significant share buybacks and initiating dividends.
Google vs AI: Is Search Dominance Under Threat?
🤔 While Google's Gemini 2.5 AI model is technically strong and benefits from ecosystem integration (Maps, Calendar), it struggles against ChatGPT's 'top of mind' status among users.
📉 AI is not yet significantly cannibalizing Google's most profitable search queries (e.g., local services), but the long-term risk is acknowledged, leading to a reduced position size by the speaker.
⚖️ The company's valuation is seen as more acceptable now compared to other large caps, but the increased competitive risk from AI justifies caution.
Google’s Growth Engine Roars: Time to Invest?
📈 Alphabet reported excellent Q1 2025 results, showcasing strong growth with overall revenue up 12% year-over-year, driven by Search, YouTube, and Cloud.
☁️ Google Cloud continues its impressive expansion, growing 28% year-over-year and significantly boosting operating income by 141% as it scales profitability.
💰 The company demonstrates robust financial health and shareholder value through significant share buybacks ($15B in Q1, $70B authorized) and dividend payments, alongside attractive valuation metrics suggesting potential undervaluation.
Google Gains Post-Earnings But Hits Resistance Wall
📈 Google reported positive earnings results, leading to a moderate stock price increase of around 3.5-4%.
⚖️ The company faces antitrust scrutiny regarding Chrome, accused of monopolistic practices, although the outcome is uncertain and other browsers exist.
📉 Technically, Google's stock fulfilled a bullish divergence pattern but has now reached a resistance area, suggesting a potential pause or pullback.
Google Surges on Strong Earnings and Waymo Progress
📈 Alphabet reported Q1 earnings and revenue that beat analyst expectations, driven by strong search advertising performance.
💰 Net income reached $2.81 per share, surpassing the estimated $2 per share, signaling robust profitability.
🤖 Waymo's robotaxi service is expanding, making over 250,000 paid trips weekly, with potential for personal ownership in the future.
Google Crushes Earnings But Where Is The Guidance?
📈 Alphabet reported strong Q1 results, beating expectations with significant revenue growth (12% YoY, 14% constant currency) driven by Search, YouTube, and especially Google Cloud (28% growth).
☁️ Google Cloud's operating income doubled year-over-year, showcasing substantial margin expansion and contributing significantly (50%) to the overall operating income growth.
🤔 Despite stellar results and a massive $70B share buyback authorization, the initial lack of forward-looking guidance during the earnings release created some uncertainty, though the stock reacted positively.
