News 
Market Data 
Discover
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Alphabet $GOOGL Money flows show top hedge funds bought ~20M shares, doubled its inflows q/q vs sold 7.55M, decreased its outflows by 75% q/q, see HM500 Key Stats
By: HedgeMind | December 27, 2023
• $GOOGL is at a new 52Wk high, $142.68 intraday today!
Money flows show top hedge funds bought ~20M shares, doubled its inflows q/q vs sold 7.55M, decreased its outflows by 75% q/q, see HM500 Key Stats
20 new buyers reported holding 9.6M+ shares.
Top new buyers are:
Stephen Mandel, Lone Pine Capital
Gavin Baker, Atreides Mgmt
Jose Resnick, Jericho Capital
https://hedgemind.com/stocks/GOOGL
Read Full Story »»»
DiscoverGold
Wall Street dives into Alphabet's potential and pitfalls
By: Investing | December 26, 2023
Alphabet (NASDAQ:GOOGL) Inc. at the Forefront of Generative AI with Gemini Launch
Alphabet Inc., the parent company of Google, continues to push the boundaries of technological innovation. The company's latest development, a next-gen foundation model named Gemini, is set to revolutionize its core services, including Search, Ads, and Cloud. This analysis, fueled by recent reports from Citi Research and Stifel, aims to dissect Alphabet's strategic moves and the potential impacts on its market performance, competitive landscape, and future growth prospects.
Market Performance and Product Segments
Alphabet's stock (NASDAQ:GOOGL) remains a focal point for investors, with the company's market capitalization demonstrating its heavyweight status in the tech industry. The introduction of Gemini, Alphabet's multimodal AI model, is anticipated to initiate a product super cycle, enhancing the company's diverse portfolio. Google Search is expected to benefit from improved quality and reduced latency, while YouTube's growth is projected to accelerate. Google Cloud is poised to gain from the availability of Gemini Pro on its AI platforms, signaling potential for expansion in the cloud services sector.
Competitive Landscape and Market Trends
Despite the competitive pressure from rivals such as Microsoft (NASDAQ:MSFT) Azure, Alphabet's advancements in Generative AI (GenAI) through Gemini are expected to bolster its market position. Stifel's analysis suggests that Google's AI capabilities will maintain user engagement, countering the competitive threat narrative. Meanwhile, Alphabet's reorganization of its advertising sales arm, potentially leading to layoffs, is projected to save around $3 billion annually and drive operating efficiencies.
Customer Base and Management Strategy
Alphabet's vast customer base is set to grow further with the integration of Gemini across its services. The company's strategic focus on AI and search technology is evident in its commitment to product innovation and enterprise adoption. The reorganization within its advertising division reflects a push towards automation and cost management, aligning with the company's long-term growth strategies.
Potential Impacts of External Factors
While Alphabet has shown resilience in online advertising, external factors such as macroeconomic conditions and regulatory challenges continue to pose risks. The company's investments in GenAI, however, present emerging tailwinds that could drive profitability amidst these challenges.
Upcoming Product Launches
The launch of Gemini, with its versions Ultra, Pro, and Nano, marks a significant milestone for Alphabet. Set to be integrated across Google's core services, Gemini's multimodal capabilities are expected to lead to a surge in product innovation in 2024.
Stock Performance
Alphabet's stock performance has been bolstered by positive analyst sentiment. Citi Research maintains a Buy rating with a target price of $153, reflecting confidence in the company's growth trajectory, particularly with the introduction of Gemini. Stifel echoes this optimism, setting a target price of $154 based on Alphabet's durable core business and long-term growth opportunities.
Bear Case
The cloud computing segment's competitiveness remains a concern, but Alphabet's GenAI advancements through Gemini may mitigate this issue. Legal and regulatory risks persist, yet the company's proactive management strategy and cost-saving measures could help navigate these challenges.
Bull Case
Generative AI, with the launch of Gemini, is set to shape Alphabet's future significantly. The model's superior performance and integration across Alphabet's portfolio are expected to enhance offerings and drive long-term growth, reinforcing the company's dominance in various sectors.
SWOT Analysis
Strengths:
- Dominance in search and online advertising with the integration of Gemini.
- Significant investments in GenAI and product innovation.
- Diverse product portfolio with a broad and growing customer base.
Weaknesses:
- Cloud segment competitiveness, although mitigated by GenAI advancements.
- Legal and regulatory risks, with potential for strategic navigation.
- Reliance on advertising revenue in a volatile market, offset by cost-saving measures.
Opportunities:
- Expansion of AI capabilities across products and services with Gemini.
- Growth potential in cloud services and capturing transitioning TV ad spend.
- Streamlining operations and automation in advertising sales.
Threats:
- Intense competition in cloud and advertising, with a focus on maintaining AI leadership.
- Macroeconomic instability, with resilience in ad spend and operating efficiencies.
- Changes in consumer behavior and privacy regulations, with a proactive management response.
Analysts Targets
- Barclays Capital Inc. (BCI): Overweight with a price target of $180.00 (October 25, 2023).
- RBC Capital Markets: Outperform with a price target of $155.00 (October 25, 2023).
- KeyBanc: Overweight with a price target of $153.00 (October 25, 2023).
- JMP Securities: Market Outperform with a price target of $140.00 (October 25, 2023).
- Morgan Stanley: Not specified.
- J.P. Morgan: Overweight (October 18, 2023).
- Citi Research: Buy with a price target of $153.00 (December 08, 2023).
- Stifel: Buy with a price target of $154.00 (December 21, 2023).
- Wedbush: Outperform with a price target of $160.00 (November 16, 2023).
This analysis is based on reports from October to December 2023.
Read Full Story »»»
DiscoverGold
GOOG new 52 week high
Wishing everyone Merry Christmas and a Happy New Year!
DiscoverGold
Alphabet $GOOG about to turn this volume shelf into a launch pad?
By: TrendSpider | December 21, 2023
• Google about to turn this volume shelf into a launch pad?
Read Full Story »»»
DiscoverGold
If I Could Only Buy 1 Stock in 2024, Alphabet (GOOGL) (GOOG) Would Be It
By: Barchart | December 21, 2023
If I were to choose a single stock for investment in 2024, Alphabet (GOOGL) (GOOG) would be at the top of my list. This company holds a prominent position in the technology industry, showcasing its involvement and leadership in various technological innovations. Serving as the parent company of Google and several subsidiaries, Alphabet dominates in search technology, online advertising, cloud computing, and mobile operating systems.
Alphabet also aggressively invests in emerging technologies, including artificial intelligence (AI), machine learning, and autonomous vehicles. These investments position Alphabet as a high-reward, long-term investment. With this backdrop, let’s delve deeper to understand why Alphabet is poised for long-term success.
However, before that, it’s imperative to stress the importance of a diversified investment approach. While Alphabet may present a compelling opportunity, investing solely in one stock carries inherent risks. Building and maintaining a diversified portfolio remains critical for risk reduction.
www.barchart.com
What Does Alphabet Do?
Alphabet owns a diverse range of businesses, with Google being the largest among them. The company categorizes Google’s operations into two main segments: Google Services and Google Cloud. Additionally, all non-Google businesses are collectively labeled as "Other Bets."
Within Google Services, the company’s key products and platforms, such as Search, YouTube, Android, Gmail, Chrome, ads, hardware, Google Maps, Google Drive, and Google Photos, have gained widespread global adoption. The segment primarily generates revenue via advertising. Beyond advertising, income is sourced from app and in-app purchases, hardware sales, and subscriptions to services like YouTube Premium.
As for Google Cloud, the company provides advanced technology solutions in areas such as cybersecurity, analytics, data management, AI, machine learning, and infrastructure. Additionally, it offers Google Workspace, featuring communication and collaboration tools like Gmail, Docs, Drive, Meet, and others.
Alphabet’s “Other Bets” include businesses that are in varying stages of development, ranging from those in the research and development phase to those at the initial stages of commercialization.
AI To Reaccelerate Alphabet’s Growth
Alphabet will likely see a significant reacceleration of revenue growth in the coming years, driven by its efforts to infuse AI into its core products, primarily Search, YouTube, and Cloud.
The predominant contributor to Alphabet's revenue is Google Search, constituting approximately 57% of total revenue in the first nine months of 2023. The infusion of generative AI capabilities into Search through the Search Generative Experience is expected to enhance competitiveness and uphold its leadership in the online advertising ecosystem. Moreover, Alphabet's AI-driven offerings, including Search and Performance Max, have garnered substantial interest from retailers, showcasing a solid return on investment. This trend suggests a growing demand for Alphabet’s AI-powered advertising solutions, leaving them well-poised to contribute to overall revenue growth.
Besides Search, the company is working on expanding its cloud platform by introducing new features and capabilities, with a strong focus on AI-driven functionalities. This strategic move is expected to draw more customers to its platform. Notably, Google Cloud revenue witnessed a significant 26% year-to-year increase in the first nine months of this year, driven by robust performances in its infrastructure and platform services. Further, Google pointed out that over 60% of the world’s 1,000 largest companies are already its customers.
Looking ahead, Google Cloud Platform and Workspace are poised to benefit from the integration of AI solutions, including advanced infrastructure and services such as Vertex AI and Duet. Moreover, Google recently unveiled Gemini, its highly anticipated next-generation large language model, which is set to support the company’s Search, Ads, Chrome, and Duet AI functionalities.
In summary, the company’s ability to leverage generative AI functionality across its key product lines, continued innovation, and growth in digital advertising is anticipated to accelerate its growth, thereby propelling its stock higher.
Returning Cash To Shareholders Could Act As A Catalyst
The tech giant also remains well-positioned to enhance its shareholders’ returns through ongoing share repurchases, which should act as a catalyst.
Alphabet generated a substantial free cash flow of $78 billion over the trailing 12 months. Additionally, by the end of the third quarter, the company held $120 billion in cash and marketable securities. Notably, Alphabet allocated $46.2 billion towards share repurchases in the first nine months of 2023.
Looking forward, Alphabet's robust balance sheet and cash flow provide a solid foundation to support its key growth initiatives, including acquisitions. This financial strength will also empower the company to return substantial cash to its shareholders through ongoing buyback programs.
Bottom Line
Alphabet dominates the search, digital advertising, and cloud businesses. The company is integrating AI into its core products, which bolsters its competitive edge and drives its market share. Moreover, Alphabet's robust balance sheet and cash flows establish a solid groundwork for ongoing expansion and the capacity to amplify returns for shareholders.
This is mirrored in analysts’ positive outlook on GOOGL. Out of the 37 analysts covering Alphabet stock, 29 have a “Strong Buy” recommendation, two analysts recommend “Moderate Buy,” and six have a “Hold.” Moreover, the average price target is $152.38, which implies about 8.6% upside potential from current levels.
www.barchart.com
Read Full Story »»»
DiscoverGold
GOOGL Stock Has Large Unusual Options Activity Today
By: Barchart | December 20, 2023
Alphabet Class A (GOOGL) stock is showing large unusual put option activity today based on a Barchart report. The puts are set to expire after Friday, which looks to be due to short-term trading activity.
The Barchart Unusual Stock Options Activity Report on Wednesday, Dec. 20, 2023, shows that over 26,400 contracts of $140 strike price puts expiring Dec. 22 have traded today. In addition, over 15,400 puts at the $139 strike price for the same expiry period have also traded.
GOOG stock trades for $140.60 per share, so these puts are only slightly out-of-the-money (OTM). If the stock were to decline just slightly to $140.00 or $139.00, i.e., by -0.43% or -1.13% respectively, the short-sellers of these puts will have to buy a large number of shares in GOOGL stock.
For example, the potential obligation of the $140 short-put sellers will be over $369.6 million (i.e., $140 x 26,200 contracts x 100). The traders would most likely cover their obligation in that case.
GOOGL Puts Expiring Dec. 22, 2023 - Unusual Stock Options Activity Report - Barchart - Wed., Dec. 20, 2023
Note that this volume of puts is significantly higher than normal. For example, the Vol/OI (i.e., Volume/Open Interest) column shows that the $140 puts are over 140x the prior number of outstanding put contracts. The $139 strike price puts are almost 100x normal.
As a result, these short-term trades are likely from large institutional accounts or hedge funds.
This could also be a situation where a long investor(s) is hedging their long position in GOOGL stock. They may have purchased a large number of put contracts for expiration on Friday. In both tranches, they are hoping that any decline in the stock will be offset by a rise in the price of the puts.
What can we glean from these trades? Let's look at the valuation issues relating to GOOGL stock and see where things stand.
Where Things Stand With Alphabet And GOOGL Stock
Like most tech stocks, GOOGL has risen a good deal in the past month. The chart below from Barchart shows that it is at a recent 6-month peak.
GOOGL stock - Barchart - Dec. 20, 2023
Fears of a reversal could be one more reason why institutional funds might want to buy puts to protect against any downside from here.
But from a valuation standpoint, Alphabet stock still looks relatively inexpensive.
For example, analysts surveyed by Seeking Alpha show that they expect $6.70 in earnings per share (EPS) next year, up over 16% forecast for 2023 (i.e., $5.77 EPS).
That puts GOOGL stock on a 2024 forward earnings multiple of just 20.8x. That is not expensive given that Morningstar reports that its 5-year forward P/E (price/earnings) multiple has been 25.13x.
In other words, based on that measure, GOOGL stock could be worth as much as $170 per share sometime in the next year. That implies it has a 21% upside over today's price.
FCF Looks Strong
Moreover, from a free cash flow (FCF) standpoint, the stock looks cheap. Alphabet is one of the few companies that publishes its FCF every quarter. On page 9 of its earnings release, the company stated that in Q3 it made $22.6 billion in FCF.
That FCF represents 32.7% of its quarterly revenue of $69.09 billion. In other words, almost one-third of all its revenue goes straight into its bank account with no obligations whatsoever.
Free cash flow is the remaining leftover or “free” cash flow after all cash expenses and spending such as capex and working capital changes. It's a measure of the company's profitability.
As a result, if we use analysts' projections of $340 billion in revenue next year, we can estimate that Alphabet will generate over $111 billion in FCF. We can use that to value the stock.
For example, using a 3.33% FCF yield, the stock would rise to have a $3,369 billion valuation. That assumes that all the $111 billion in FCF is paid out as a dividend and the stock market gives GOOGL stock a 3.33% dividend yield. So we divide $111b by 0.0333 and derive a target market cap of $3.369 trillion.
That is also the same as multiplying its FCF by 30 times (i.e., 1/0.03333 = 30). This is reasonable given that its long-term P/E multiple is 25x.
In other words, given that its market cap today is $1.72 trillion, we could see GOOGL stock rise by 96% over the next year.
The bottom line is that GOOGL stock is undervalued anywhere from 21% to 96%. So, on average it's possible the stock could be worth 58.5% more over the next year. That means that most shareholders in the stock should probably hang on, despite the stock's recent rise.
Read Full Story »»»
DiscoverGold
January happens to be the second best performing month for $GOOGL over the last decade. 80% win rate, average return of +4.47%
By: TrendSpider | December 20, 2023
• January happens to be the second best performing month for Google over the last decade. $GOOGL
80% win rate, average return of +4.47%.
Read Full Story »»»
DiscoverGold
Alphabet $GOOGL getting some Jan action
By: FLOWrensics | December 18, 2023
• $GOOGL getting some Jan action
Read Full Story »»»
DiscoverGold
Alphabet $GOOGL $1.4+ Million Weekly OTM Call Sweepers. These traders are looking for a short-term bounce to scalp
By: Cheddar Flow | December 11, 2023
• $GOOGL $1.4M+ Weekly OTM Call Sweepers (Unusual)
These traders are looking for a short-term bounce to scalp
Read Full Story »»»
DiscoverGold
Alphabet $GOOGL Released a new chatGBT version, talk that the video was staged... 50D holds all good. Not far from 52W high
By: Options Mike | December 10, 2023
• $GOOGL Released a new chatGBT version, talk that the video was staged... hmm
50D holds all good. Not far from 52W high.
Read Full Story »»»
DiscoverGold
That's exactly what I'm saying. That The Cloud TP-Me. 💫💫💫
Options Traders Respond to Alphabet's (GOOGL) New AI Model
By: Schaeffer's Investment Research | December 7, 2023
• Competition for OpenAI's ChatGPT is here
• GOOGL's total options volume is running at four times the intraday average
In more artificial intelligence (AI) news, Alphabet Inc (NASDAQ:GOOGL) today launched its Gemini AI model, which could compete with OpenAI, the parent of ChatGPT that is backed by Microsoft (MSFT). At last check, GOOGL is up 5.6% at $137.26.
The options pits are abuzz, with 456,000 calls and 255,00 puts exchanged so far -- four times the intraday average amount. The December 140 call, where new positions are being opened, is the most popular contract.
These traders are getting a bargain, as GOOGL's Schaeffer's Volatility Index (SVI) of 25% stands in the relatively low 16th percentile of annual readings. This means options traders are pricing in lower-than-usual volatility expectations.
Today's surge puts Alphabet stock back above its 20-day moving average, after the $128 level captured a brief pullback earlier in the week. The security could also make another attempt to conquer the $140 mark, where its October rally lost steam. For 2023, GOOGL sports a 55.6% lead.
Read Full Story »»»
DiscoverGold
Alphabet (GOOGL) soars as Wall Street cheers arrival of AI model Gemini
By: Investing | December 7, 2023
(Reuters) - Alphabet (NASDAQ:GOOGL) surged 5% on Thursday as Wall Street cheered the launch of Gemini, saying the new artificial intelligence model could help narrow the gap in a race with Microsoft-backed OpenAI.
Long considered a leader in AI research, Alphabet lost the spotlight when OpenAI's ChatGPT swept the tech landscape upon its launch last November and allowed investor Microsoft (NASDAQ:MSFT) to aggressively roll out AI-powered software to businesses.
Now, Gemini looks poised to boost Alphabet's AI heft again.
The Google parent said the much-awaited AI system was faster than OpenAI's latest model and can process different forms of media such as video, audio and text. It comes in three versions, each designed to use a different amount of processing power.
"Google is beginning to address investor concerns around generative AI innovation and the high cost of running GenAI models through the combination of Gemini's different model sizes," J.P. Morgan analysts said.
The company was on track to add nearly $80 billion to its market value, if gains hold. The warm reception contrasted with the nearly $100 billion selloff in Alphabet in February after its Bard chatbot shared inaccurate information in a promotional video and a company event failed to impress.
"Gemini's release comes at an interesting point in time when OpenAI/ChatGPT users have been complaining about how updates to the GPT model family have potentially impacted the quality of its output," Macquarie analysts wrote in a note.
"If Google is shipping a GPT-4-beating model, this could help gather user and developer momentum behind Google."
In the September quarter, growth at Alphabet's cloud unit slowed to a near three-year low, paling in comparison to the rebound seen at Microsoft Azure, which benefited from spending by businesses preparing to roll out AI features.
Microsoft currently trades at 30.68 times its 12-month forward earnings estimates, compared with the Google parent's 19.59.
Read Full Story »»»
DiscoverGold
Alphabet unveils long-awaited Gemini AI model
By: Investing | December 6, 2023
SAN FRANCISCO (Reuters) - Alphabet (NASDAQ:GOOGL) on Wednesday introduced its most advanced artificial intelligence model, a technology capable of crunching different forms of information such as video, audio and text.
Called Gemini, the Google owner's highly anticipated AI model is capable of more sophisticated reasoning and understanding information with a greater degree of nuance than Google's prior technology, the company said.
"This new era of models represents one of the biggest science and engineering efforts we’ve undertaken as a company," Alphabet CEO Sundar Pichai wrote in a blog post.
Since the launch of OpenAI's ChatGPT roughly a year ago, Google has been racing to produce AI software that rivals what the Microsoft-backed company has introduced.
Google added a portion of the new Gemini model technology to its AI assistant Bard on Wednesday, and said it planned to release its most advanced version of Gemini through Bard early next year.
Alphabet said it is making three versions of Gemini, each of which is designed to use a different amount of processing power. The most powerful version is designed to run in data centers, and the smallest will run efficiently on mobile devices, the company said.
Gemini is the largest AI model that the company's Google DeepMind AI unit has helped make, but it is "significantly" cheaper to serve to users than the company's prior, larger models, DeepMind Vice President, Product Eli Collins told reporters.
"So it's not just more capable, it's also far more efficient," Collins said. The latest model still requires a substantial amount of computing power to train, but Google is improving on its process, he added.
Alphabet also announced a new generation of its custom-built AI chips, or tensor processing units (TPUs). The Cloud TPU v5p is designed to train large AI models, and is stitched together in pods of 8,960 chips.
The new version of its customer processors can train large language models nearly three times as fast as prior generations. The new chips are available for developers in "preview" as of Wednesday, the company said.
Read Full Story »»»
DiscoverGold
She compressed the image, but I flashed her drive :)))
I would like to be o-bayed by Goo-G (like my hangar is empty)
One Solar Mass that burns hotter than anything.
Even more important than going to the Moon is when she sends me out of the Solar System
Google Heapfind is now old
I'm ready for Goo-G's Bloomingsun Mathematics
A 'biggest bang fully blown' story
He's the fireplace bellow because he's screaming like hell.
She's the fireplace bellow because she's stoking his flame.
He's obeying her every move because she has perfect control.
She's obeying him because there is only one song for his uni-verse.
He's the soulless sucker because his soul came out.
She's the [soulless sucker]x2 because she mathed it down to remainder zero AND finished the job
Alphabet $GOOGL lost a bunch of key levels here.. 128.5 level to watch to hold now
By: Options Mike | December 3, 2023
• $GOOGL lost a bunch of key levels here..
128.5 level to watch to hold now.
Read Full Story »»»
DiscoverGold
Whoever made the decision needs to be shitcanned!
https://www.cnbc.com/2023/11/29/google-maps-new-colors-upset-some-including-former-designer.html
Commonwealth Equity Services LLC Raises Holdings in Alphabet Inc. (GOOGL)
By: MarketBeat | November 26, 2023
• Commonwealth Equity Services LLC grew its position in shares of Alphabet Inc. (NASDAQ:GOOGL) by 1.9% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 2,483,495 shares of the information services provider's stock after purchasing an additional 45,910 shares during the quarter. Alphabet makes up about 0.6% of Commonwealth Equity Services LLC's holdings, making the stock its 21st largest position. Commonwealth Equity Services LLC's holdings in Alphabet were worth $297,274,000 at the end of the most recent reporting period...
Read Full Story »»»
DiscoverGold
Alphabet $GOOGL Beaten up on delay of their ChatGBT-4 offering to take on OpenAI.. oh wait.. OpenAI now has huge problems too...
By: Options Mike | November 19, 2023
• $GOOGL Beaten up on delay of their ChatGBT-4 offering to take on OpenAI.. oh wait.. OpenAI now has huge problems too...
Dip a gift here, held the 8/50D strong name.
Read Full Story »»»
DiscoverGold
$GOOGL attracted significant net money inflows from top hedge funds which increased its stakes by 14% in Q3
By: HedgeMind | November 17, 2023
• $GOOGL attracted significant net money inflows from top hedge funds which increased its stakes by 14% in Q3.
Bill Ackman, a top buyer, doubled his position to hold 4.35M+ shs.
And worth to mention $GOOGL is Stanley Druckenmiller's top pick, a new position.
$GOOGL has recovered most of its losses after Q3 earnings report.
See who else got on board:
https://hedgemind.com/stocks/?symbol=GOOGL
Read Full Story »»»
DiscoverGold
Barclays anticipates Google defeat in antitrust case, stock rises
By: Investing | November 14, 2023
Alphabet (NASDAQ:GOOGL) Inc. (NASDAQ:GOOG), the parent company of Google, is currently navigating through a challenging antitrust lawsuit. Despite a prediction from Barclays that the tech giant may face a defeat in the U.S. antitrust case, Alphabet's shares experienced an unexpected rise, increasing by 1.5% today. This legal battle has been brought into sharper focus following expert testimony on Monday that disclosed Google derives a significant 36% of its search advertising revenue from Safari users.
The spotlight on Google's revenue-sharing agreement with Apple Inc. (NASDAQ:AAPL) could provide leverage to regulatory authorities like the U.K.'s Competition and Markets Authority (CMA). The authority may consider enforcing measures similar to those used in Europe, such as "choice screens" for search engines and limits on revenue sharing. These measures have been implemented on some Android devices in Europe but have had limited impact on Alphabet's market valuation.
Despite these challenges, Wall Street maintains a positive outlook on Alphabet's financial prospects.
The case against Google has been gaining momentum since earlier in November 2023, when Barclays raised concerns about the formidable case built by the U.S. Justice Department. The unique market dynamics of iOS devices in the U.S., which are due to evolve in 2024, could exacerbate the impact if Google were to lose this legal dispute. This outcome could lead Apple to consider alternatives for its search service, potentially partnering with Microsoft (NASDAQ:MSFT)'s Bing or developing its own search engine.
Read Full Story »»»
DiscoverGold
Alphabet $GOOGL Despite a bla report slowly being bought back. In the gap 50D still the next big spot
By: Options Mike | November 12, 2023
• $GOOGL Despite a bla report slowly being bought back.
In the gap 50D still the next big spot.
Read Full Story »»»
DiscoverGold
Google in talks to invest in AI startup Character.AI -sources
By: Investing | November 10, 2023
(Reuters) - Alphabet (NASDAQ:GOOGL)'s Google is in talks to invest hundreds of millions of dollars in Character.AI, as the fast growing artificial intelligence chatbot startup seeks capital to train models and keep up with user demand, two sources briefed on the matter told Reuters.
The investment, which could be structured as convertible notes, according to a third source, will deepen the existing partnership Character.AI already has with Google, in which it uses Google's cloud services and Tensor Processing Units (TPUs) to train models.
Google and Character AI did not respond to requests for comment.
Founded by former Google employees Noam Shazeer and Daniel De Freitas, Character.AI allows people to chat with virtual versions of celebrities like Billie Eilish or anime characters, while creating their own chatbots and AI assistants. It is free to use, but offers subscription model that charges $9.99 a month for users who want to skip the virtual line to access a chatbot.
Character.AI's chatbots, with various roles and tones to choose from, have appealed to users ages 18 to 24, who contributed about 60% of its website traffic, according to data from Similarweb (NYSE:SMWB). The demographic is helping the company position itself as the purveyor of more fun personal AI companions, compared to other AI chatbots from OpenAI's ChatGPT and Google's Bard.
The company previously said its website had attracted 100 million monthly visits in the first six months since its launch.
Character.AI is also in talks to raise equity funding from venture capital investors, which could value the company at over $5 billion, sources said. In March, it raised $150 million in a funding round led by Andreessen Horowitz at $1 billion valuation.
The talks with Google are ongoing and terms of the deal could change, said the sources, who requested anonymity as the discussions are private.
Google has been investing in AI startups, including $2 billion for model maker Anthropic in the form of convertible notes, on top of its earlier equity investment. Anthropic uses Google's cloud services as well as its latest version of TPUs.
That is part of a recent trend in which big tech cloud services providers are striking deals with AI companies to entice them to use certain cloud or hardware in the computer-intensive race to build models and serve consumers, including Microsoft (NASDAQ:MSFT) investments in OpenAI and Google and Amazon (NASDAQ:AMZN)'s bets on Anthropic.
U.S. Federal Trade Commission chair Lina Khan said at an event in San Francisco last week that the agency is looking into cloud provider investments in AI startups to examine any anti-competitive behaviors.
Read Full Story »»»
DiscoverGold
Alphabet $GOOGL They sold the report and guidance, but back to the gap now. On watch this week, will be telling if the power it back up through this gap
By: Options Mike | November 5, 2023
• $GOOGL They sold the report and guidance, but back to the gap now.
On watch this week, will be telling if the power it back up through this gap.
120 support.
Read Full Story »»»
DiscoverGold
With all the Magnificent 7 now reported except $NVDA, I updated my Mag 7 chart showing 2024 P/E vs forward 5yr EPS growth per WS to compute a 2024 PEG for each
By: Gary Black | November 2, 2023
• With all the Magnificent 7 now reported except $NVDA, I updated my Mag 7 chart showing 2024 P/E vs forward 5yr EPS growth per WS to compute a 2024 PEG for each.
$GOOG still cheapest of Mag 7 at 1.1x PEG. META and AMZN tied for 2nd place at 1.2x PEG.
$AAPL still most expensive at 2.9x PEG. Tonight AAPL reduced rev growth for Dec qtr so PEG could >3.0. MSFT 2nd most expensive.
$TSLA 2024 PEG now 1.8x vs 1.7x avg for Mag 7 ex-TSLA.
Read Full Story »»»
DiscoverGold
Google $GOOG Total Debt (mrq) $29.45B w/ Book Value of only $21.78 overbought by 600%
$GOOG Google trying to hold the ~$120 volume shelf after last weeks big breakdown...
By: TrendSpider | October 29, 2023
• $GOOG Google trying to hold the ~$120 volume shelf after last weeks big breakdown...
Sizable volume gap below it.
Read Full Story »»»
DiscoverGold
$GOOGL Opening OTM leaps ~ 01/17/25 $220 CALLS
By: FLOWrensics | October 27, 2023
• $GOOGL Opening OTM leaps ~ 01/17/25 $220 CALLS.
Read Full Story »»»
DiscoverGold
GOOG $123.94 -16.18 (-11.55%) ... A DOSE OF KARMA FOR EVIL GOOGLE!!!!!!!!!!
Alphabet $GOOGL suffers largest daily loss since covid
By: Barchart | October 25, 2023
• Alphabet $GOOGL suffers largest daily loss since covid.
Read Full Story »»»
DiscoverGold
Huge Call Volume in GOOG and GOOGL Today Signals Some are Still Bullish
By: Barchart | October 25, 2023
Alphabet (GOOG, GOOGL) released mixed earnings yesterday to disappointed investors. GOOG and GOOGL stock have both taken hits. But the huge volume today in its calls signals some think the drop today is overdone.
The company said its revenue rose 11% year over year to $76.93 billion from $69.09 billion a year ago. But this was disappointing as the market had been forecasting revenue of $85.15 billion, according to Seeking Alpha.
Moreover, Q3 sales were only $2.09 billion higher than last quarter's $74.6 billion in sales. That represents a paltry 2.8% QoQ revenue growth rate.
In addition, Google Cloud sales rose just 4.7% from $8.0 billion in Q2 to $8.4 billion in Q3. Investors had been hoping to see much higher growth.
Free Cash Flow Still Strong
Nevertheless, the company's free cash flow (FCF) is strong. In Q3 it generated $22.6 billion in FCF. That was 3.77% higher than the Q2 FCF figure of $21.778 billion.
But even more importantly the FCF margin stayed elevated at 29.4% in Q3 vs. 31.5% in the prior quarter.
The bottom line is that Alphabet is still an incredibly strong and profitable company, although its growth rate seems to be slowing.
Heavy Call Option Volume Today
Today a large volume of calls with unusually high ratios of volume to open interest (Vol/OI) have traded in both GOOG and GOOGL stock. This can be seen in the Barchart Unusual Stock Options Activity Report table below.
10-25-23 - Barchart Report - GOOG and GOOGL
It shows that most of the strike prices of these call options are out-of-the-money (OTM). That indicates that some of these trades may have been initiated by bullish investors who think that the roughly 9% downdraft in Alphabet stock today may have been overdone.
On the other hand, some of these trades offer good covered call opportunities for existing GOOG and GOOGL investors. For example, the $130 strike price calls due Nov. 3, which is 9 days from now, offer a premium of $1.27.
That represents a 1.0% yield on today's spot price of $127.33 per share with less than 2 weeks to go before expiration. So, on an annualized basis, assuming this trade could be repeated 26 times in a year, the expected return is 25.9%. That assumes, again, that this exact trade could be repeated each time.
The bottom line seems to be that some option investors are taking advantage of today's weakness in GOOG and GOOGL stock, based on its reset growth rate.
Contrarian Thinking
This is essentially how contrarians think. For example, is it really such a bad thing that this company has produced a 29% FCF margin and generated $22 billion in free cash flow? I don't think so.
For example, using a FCF yield metric we can estimate a value for GOOG stock. Let's assume that analyst estimates for $339.57 billion in sales next year come to pass. That implies that, using a 29.4% FCF margin its FCF could rise to about $100 billion (i.e., 0.294 x $339.57 = $99.8 billion).
So, what is a company that generates $100 billion in free cash flow worth? At a 3% FCF yield (i.e., 33.3x FCF) it is worth $3.33 trillion. Today's market cap is $1.589 trillion.
Moreover, even using a 5% yield (i.e., 20x FCF), it is worth $2 trillion. That is still 25.9% over today's market cap, implying huge upside in the stock. It could still be worth $160.30 per share (i.e., 1.259 x $127.33). That assumes Alphabet generates a consistent 29% to 30% FCF margin and its revenue growth stays on target with analyst estimates.
In fact, even at a 5.5% FCF yield (i.e., 18.2x FCF), the market cap should be worth $1.818 trillion, or 14.4% over today's price. That puts the minimum price target at $145.66 per share.
In other words, maybe this hit to Alphabet's market cap is temporary. No wonder there are large call buyers today in GOOG stock and GOOGL stock.
Read Full Story »»»
DiscoverGold
Google $GOOGL is starting trading today down more than 8% with its market cap dropping by $150 Billion overnight
By: Evan | October 25, 2023
• Google $GOOGL is starting trading today down more than 8% with its market cap dropping by $150 Billion overnight.
Read Full Story »»»
DiscoverGold
Financial Services Price Targets on Google $GOOGL
By: Evan | October 25, 2023
Morgan Stanley today lowered its price target on Google $GOOGL to $150 from $155 while maintaining its Overweight rating
Barclays lowered its price target on Google $GOOGL to $180 from $200 while maintaining its Overweight rating
Rosenblatt raised its price target on Google $GOOGL to $174 from $163 while maintaining its Buy rating
Needham raised its price target on Google $GOOGL to $160 from $140 while maintaining its Buy rating
Keybanc lowered its price target on Google $GOOGL to $153 from $155 while maintaining its Overweight rating
Baird raised its price target on Google $GOOGL to $145 from $140 while maintaining its Outperform rating
Read Full Story »»»
DiscoverGold
History of Google's $GOOGL Q3 revenue
By: Savvy Trader | October 25, 2023
• History of Google's $GOOGL Q3 revenue
2004: $805.9M
2005: $1.6B
2006: $2.7B
2007: $4.2B
2008: $5.5B
2009: $5.9B
2010: $7.3B
2011: $9.7B
2012: $13.3B
2013: $13.8B
2014: $16.5B
2015: $18.7B
2016: $22.4B
2017: $27.8B
2018: $33.7B
2019: $40.5B
2020: $46.2B
2021: $65.1B
2022: $69.1B
2023: $76.7B
Read Full Story »»»
DiscoverGold
Google Cloud's $GOOGL Revenue and Operating Income each quarter since Q4 2019
By: Evan | October 24, 2023
• Google Cloud's $GOOGL Revenue and Operating Income each quarter since Q4 2019.
Read Full Story »»»
DiscoverGold
Alphabet shares fall after cloud revenue gains fall short of expectations
By: Investing | October 24, 2023
Google parent Alphabet (NASDAQ:GOOGL) Inc Class C (NASDAQ:GOOG) shares fell more than 5% in after-hours trading after weaker than expected gains in revenue from its cloud computing operation.
The company reported third quarter earnings of $1.55 a share on revenue of $76.7 billion. Both measures beat expectations for profit of $1.46 a share on revenue of $75.9 billion.
Overall, revenue was up 11%. Cloud revenue rose 22% to $8.4 billion but was short of expectations for $8.6 billion.
Google said revenue from search and other businesses rose 11% to $44 billion, and YouTube advertising revenue rose 12% to $7.9 billion.
Alphabet CEO Sundar Pichai said: "I'm pleased with our financial results and our product momentum this quarter, with AI-driven innovations across Search, YouTube, Cloud, our Pixel devices and more. We're continuing to focus on making AI more helpful for everyone; there's exciting progress and lots more to come."
Read Full Story »»»
DiscoverGold
GOOGL stock is DOWN $6.48 or 4.66% after reporting earnings, as I post.
DiscoverGold
Alphabet $GOOGL Just Reported Earnings...
By: Evan | October 24, 2023
• GOOGLE $GOOGL JUST REPORTED EARNINGS
EPS of $1.55 beating expectations of $1.45
Revenue Ex-TAC of $64.1B beating expectations of $63B
Total Revenue of $76.7B beating expectations of $75.8B
Read Full Story »»»
DiscoverGold
|
Followers
|
232
|
Posters
|
|
|
Posts (Today)
|
0
|
Posts (Total)
|
9927
|
|
Created
|
05/02/04
|
Type
|
Free
|
| Moderators DiscoverGold | |||
GOOGLE
GOOGLE
8-34-200
toned daily pps PPO acuml vol r.s.i.
10 yr. black/daily/200ma 300ma 400ma 500ma 600ma PPS VOLUME
NEW UPDATES COMING /////\\\\\ 08-10-2015
