India Is Losing Its Best and Brightest
Following a new round of funding this month, Perplexity is valued at $18 billion. Early investors in the startup include Jeff Bezos, former YouTube CEO Susan Wojcicki, and entrepreneur Balaji Srinivasan. Mr. Srinivas sees search engine behemoth Google as ripe for disruption.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Will the S&P 500 Index Do the Unthinkable and Rise at Least 20% for the 3rd Consecutive Year? History Says It's Unlikely, but 1 Wall Street Analyst Thinks It Can Happen
Key Points The broad market briefly fell into bear territory earlier this year before making a huge recovery. Major changes to U.S. foreign trade policy have increased volatility. One Wall Street analyst is bullish on where stocks will end the year, as long as there's clarity on tariffs. 10 stocks we like better than S&P 500 Index › The S&P 500 has been on a wild, nearly three-year bull run. Sure, the benchmark index has experienced its ups and downs, most notably in early April when President Donald Trump's initial tariff announcements sent stocks plunging. But it only took a few months for the S&P 500 to recover, and it's now up 6% this year, as of this writing. This follows strong showings in 2023 and 2024, when the index rose 24% and 23%, respectively. With the market continuing to inch higher and about five months to go in 2025, can the S&P 500 do the unthinkable and rise over 20% for three consecutive years? History says it's unlikely, but one Wall Street strategist thinks it will happen. It's only happened one other time in nearly 100 years The stock market's performance in 2023 and 2024 was incredible, but if the S&P 500 somehow manages to claw another 13% higher from here, it would be nearly unprecedented. Looking back nearly a century, such a winning streak has only happened one other time. Thirty years ago, in the run-up to the dot-com bubble, the S&P 500 delivered more than 20% annual price gains from 1995 through 1998, and it was less than half a percentage point shy of doing so in 1999. Some believe the stock market is currently on a similar trajectory to what it experienced in the 1990s. During that time, the internet boom created tremendous enthusiasm as investors rightly predicted the new technology would go on to transform society. What they missed is that technological disruptions rarely move in a straight line, and the late 1990s was also a time of low interest rates. Today, the stock market is being powered by the artificial intelligence boom, which has sent a small group of companies to meteoric valuations. Some now have multitrillion-dollar market caps. Interest rates aren't exactly low, although one could argue the market may still be riding high from a decade of zero interest rate policy and lots of quantitative easing. This Wall Street analyst sees a back-half surge in 2025 Recently, Oppenheimer strategist John Stoltzfus put out a research note, predicting the S&P 500 would hit 7,100 by the end of the year, implying a roughly 21% move in 2025. Part of Stoltzfus' call has to do with progress the Trump administration is making on trade negotiations. Deals have begun to come in and the agreements between Japan and the European Union are enough to provide clarity to investors and remove the uncertainty that has prevented the market from moving even higher, according to Stoltzfus. As part of the deals, the U.S. will impose 15% tariffs on goods from Japan and the E.U., and both will also make hundreds of billions of investments in the U.S. "Fundamentals are improving. Look at the [3%] GDP print today. It ain't perfect, but it's certainly a lot better than the crew that was thinking we were going into a recession was thinking [...] in addition to that, you've got earnings expectations not only meeting but beyond expectations another quarter so far," Stoltzfus said on a recent interview with Yahoo! Finance. Trump has just imposed new higher tariff rates on some countries as of this writing. However, the situation remains fluid, so the higher rates may not be final. There's still near-term risk I would agree with Stoltzfus that a recession seems unlikely, at least in the near term when you consider recent economic data. However, there has also been data suggesting that macro conditions are beginning to deteriorate. There's also another big risk if inflation does not fall to the Federal Reserve's preferred 2% target. After all, the strong second-quarter gross domestic product (GDP) report suggests that economic activity is quite robust. Tariff rates are also still coming in higher than expected, with most at 15% or above, and it's very possible this will create a one-time surge in inflation. Fed Chair Jerome Powell will not cut rates this year if he doesn't believe inflation is under control, unless there is a real downturn in the job market. If rate cuts don't materialize this year, that could take some of the wind out of the market's sails. Ultimately, the S&P 500 could manage to eke out a solid year, but delivering another 20%-plus gain is more of a bull-case scenario than a base case, as things stand now. Do the experts think S&P 500 Index is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did S&P 500 Index make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Will the S&P 500 Index Do the Unthinkable and Rise at Least 20% for the 3rd Consecutive Year? History Says It's Unlikely, but 1 Wall Street Analyst Thinks It Can Happen was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14 minutes ago
- Yahoo
Is Now the Time to Buy Alphabet?
Key Points Alphabet shares have struggled this year, but they got a boost after strong second-quarter earnings. The company's Q2 revenue, net income, and EPS have all risen year over year, but so have capital expenditures. Management is investing heavily in artificial intelligence, which has been a key factor in its business performance. 10 stocks we like better than Alphabet › Shares of Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have delivered lackluster performance this year. The stock is up less than 2% through July 31. Contrast this to digital advertising and AI rival Meta Platforms, which saw shares jump over 30% in that time. However, after its second-quarter earnings report beat Wall Street expectations, Alphabet stock began to climb and is hovering not far from the 52-week high of $207.05 set in February. The recent resurgence could signal a turning point. As a result, now is a good time to evaluate whether an investment in Alphabet makes sense. Doing so requires digging into where the tech giant stands today. Alphabet's recent performance Excellent second-quarter results understandably boosted its stock. Revenue was up a strong 14% year over year to $96.4 billion. Net income rose to $28.2 billion, a 19% increase compared to 2024. Consequently, diluted earnings per share (EPS) soared 22% year over year to $2.31, exceeding Wall Street's consensus estimate of $2.18. While this growth is impressive, a key reason to consider investing in Alphabet is its success in artificial intelligence (AI). According to CEO Sundar Pichai, Google's search traffic is growing year over year, "and our new AI experiences significantly contributed to this increase in usage." AI's boost to Google is noteworthy, since the search engine accounted for $54.2 billion of Alphabet's $96.4 billion in second-quarter sales. AI is also benefiting Alphabet's other businesses, such as Google Cloud. That division saw second-quarter revenue rise an impressive 32% year over year to $13.6 billion as customers were drawn to Google Cloud's AI. Artificial intelligence also plays a crucial role in (literally) driving Alphabet's autonomous car service, Waymo. With that technology behind the wheel, it delivers over a quarter-million passenger trips every week. The company is slowly expanding Waymo to more cities. Atlanta is the latest location, initiated in June, adding to places such as Los Angeles and Austin, Texas. Waymo also signed a multiyear deal with Avis in July, as the rental car company expands into ride-hailing services, providing Waymo with operational support, including vehicle maintenance. Factors to consider with an Alphabet investment The company is determined to be a leader in AI. That's why it has made prodigious capital expenditures (capex) to boost its AI infrastructure. The second quarter's $22.4 billion in capex represented the highest sum yet in any given quarter over the past four, and far above the $13.2 billion spent in the prior year's second quarter. Its huge spending left the company with $5.3 billion in second-quarter free cash flow (FCF). While that amount is down from the previous year's $13.2 billion, a single quarter's dip is not a concern. Alphabet has exceptional ability to generate FCF, producing a princely sum of $66.7 billion over the trailing 12 months. The larger issue is that Alphabet was found guilty of antitrust violations in its digital advertising and Google Search businesses. This has been a factor in the tepid performance of its stock. The courts have yet to announce the company's punishment, but once it's made public, the shares are likely to be affected to some degree, depending on the consequences to its business. Management is appealing the rulings, and this could cause the antitrust cases to drag on for years, according to Pichai. As a result, the threat to Alphabet's business isn't immediate. And ultimately, the legal challenges could be resolved with minimal impact, as was the result in a similar antitrust case against Microsoft in 1998, which concluded in a settlement. To buy or not to buy Alphabet shares In weighing whether to invest in Alphabet, one factor to consider is share price valuation. This can be assessed using its stock's price-to-earnings (P/E) ratio, especially in comparison to competitors Microsoft and Meta. Both compete with Alphabet in digital advertising, while Microsoft is also a rival in cloud computing. The chart above shows that Alphabet's P/E multiple is the lowest compared to Meta and Microsoft, suggesting its stock is the best value versus the competition. This is underscored by the fact the company's earnings multiple is lower than it's been over the past year, up until President Donald Trump's announcement of tariff policy changes in April sank the entire stock market. Although the antitrust cases present short-term uncertainty, the company's deep pockets and commitment to battling the court rulings can help it navigate these challenges. With strong financials, successful AI initiatives, and an attractive valuation, now is a good time to consider buying shares in Alphabet. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Robert Izquierdo has positions in Alphabet, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Is Now the Time to Buy Alphabet? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14 minutes ago
- Yahoo
Oil little changed after hitting one-week low, oversupply concerns linger
By Anjana Anil (Reuters) -Oil prices were little changed on Tuesday after three days of declines on mounting oversupply concerns after OPEC+ agreed to another large output increase in September, though the potential for more Russian supply disruptions supported the market. Brent crude futures were unchanged at $68.76 a barrel by 0036 GMT while U.S. West Texas Intermediate crude was at $66.27 a barrel, down 2 cents, or 0.03%. Both contracts fell by more than 1% in the previous session to settle at their lowest in a week. The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, pumps about half of the world's oil and had been curtailing production for several years to support the market, but the group introduced a series of accelerated output hikes this year to regain market share. In its latest decision, OPEC+ agreed on Sunday to raise oil production by 547,000 barrels per day for September. It marks a full and early reversal of the group's largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand, though analysts caution the actual amount returning to the market will be less. At the same time, U.S. demands for India to stop buying Russian oil as Washington seeks ways to push Moscow for a peace deal with Ukraine is increasing concerns of a disruption to supply flows. U.S. President Donald Trump is threatening to impose 100% secondary tariffs on Russian crude buyers. This follows a 25% tariff on Indian imports announced in July. India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources. "India has become a major buyer of the Kremlin's oil since the 2022 invasion of Ukraine. Any disruption to those purchases would force Russia to find alternative buyers from an increasingly small group of allies," ANZ senior commodity strategist Daniel Hynes wrote in a note. Traders are also awaiting any developments on the latest U.S. tariffs on its trading partners, which analysts fear could slow down economic growth and dampen fuel demand growth. Sign in to access your portfolio
