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Yahoo
13-05-2025
- Business
- Yahoo
The Zacks Analyst Blog Highlights Alphabet, Meta Platforms and Microsoft
Chicago, IL – May 13, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Meta Platforms Inc. META and Microsoft Corp. MSFT. Wall Street's high-flying northward journey from January 2023 to January 2025 was predominantly supported by an astonishing rally in the technology sector, buoyed by the explosive growth of generative artificial intelligence (AI). The AI saga, supported by the massive growth of cloud computing and data centers, is yet to fully unfold. According to a report by Bloomberg Intelligence, 'The generative AI market is poised to explode, growing to $1.3 trillion over the next 10 years from a market size of just $40 billion in 2022.' Here we have identified three generative AI behemoths — Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. — that look promising in the near term. Alphabet Inc. Alphabet is riding on strong cloud and search growth. In first-quarter 2025, GOOGL saw continued double-digit revenue growth in search. Alphabet surpassed 270 million paid subscriptions with YouTube and Google One as the key drivers. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against Inc.'s (AMZN) cloud arm, Amazon Web Services, and Microsoft's Azure. GOOGL is cashing in on the increasing demand for Large Language Models with its most powerful AI model called Gemini. Google Bard and Search Generative Experience are powered by Gemini Pro to deliver an enhanced user experience. Google Cloud offers Duet AI, which provides pre-packaged AI agents that assist developers in writing, testing, documenting and operating software. Vertex usage increased 20 times in 2024, with strong developer adoption of Gemini Flash, Gemini 2.0, Imagen 3 and Veo. GOOGL launched Gemma 3, a collection of lightweight, state-of-the-art open models that can run on a single GPU or Tensor Processing Unit (TPU). At its Cloud Next 2025 conference in Las Vegas, Alphabet unveiled Ironwood, its seventh-generation TPU, expected to be available later this year. Google Cloud unveiled its Cloud Wide Area Network, giving enterprises access to its private global fiber network. Alphabet also showcased Willow, its new quantum chip while on the AI model front, Alphabet launched Gemini 2.5, its most advanced reasoning model, alongside Gemini 2.5 Flash, a low-latency, cost-efficient version tailored for developers. Alphabet currently carries a Zacks Rank #3 (Hold). Alphabet came up with first-quarter 2025 earnings of $2.81 per share, beating the Zacks Consensus Estimate of $2.02 per share. GOOGL posted revenues of $76.49 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.3%. For 2025, the Zacks Consensus Estimate currently shows revenues of $324.35 billion, suggesting an improvement of 9.9% year over year and earnings per share of $9.43, indicating an increase of 17.3% year over year. GOOGL currently has a long-term (3-5 years) EPS growth rate of 15.6%, well above the S&P 500's long-term EPS growth rate of 12.4%. Alphabet currently carries a forward P/E of 16.21X for the current financial year, compared with 18.88X of the industry and 18.62X of the S&P 500. GOOGL has a return on equity of 34.54% compared with 5.39% of the industry and 16.92% of the S&P 500 Index. At present, the short-term average price target of brokerage firms for the stock represents an increase of 30.4% from the last closing price of $152.75. The brokerage target price is currently in the range of $160-$240. This indicates a maximum upside of 57.1% and no downside. Meta Platforms Inc. Zacks Rank #3 Meta Platforms is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement with its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. META's artificial intelligence (AI)-driven platform is enhancing ad delivery efficiency and increasing return on ad spend for advertisers. Solid performance in spaces like e-commerce, gaming, entertainment, and media is benefiting Meta Platforms. META has shown strong execution of its businesses as first-quarter 2025 earnings results handsomely beat both the top and bottom-line estimates. Family daily active people totaled 3.43 billion versus the average estimate of 3.38 billion. Average Revenue Per Person came in at $12.36 compared to the average estimate of $12.14. Advertising revenues were $41.39 billion compared to the consensus estimate of $40.44 billion. The reported number represents a year-over-year increase of 16.2%. Meta Platforms is exploring chat experiences in WhatsApp and Messenger, visual creation tools for posts on Facebook and Instagram and ads. Gradually, META is expected to introduce AI for video and multi-modal experiences. Meta Platforms believes AI tools will improve the business messaging experience and customer support. On July 24, 2024, META unveiled its Llama 3 AI model. Using NVIDIA's latest HDX H200 chip that supports Meta Platforms' Llama 3 AI model, an investment of $1 by an API provider can generate $7 in revenues over the next four years. This mostly free Llama 3 model and its advanced version to be released next year aim to compete with incumbents like Open AI. Meta Platforms came up with first-quarter 2025 earnings of $6.43 per share, beating the Zacks Consensus Estimate by 23.2%. META posted revenues of $42.31 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.6%. For 2025, the Zacks Consensus Estimate currently shows revenues of $185.8 billion, suggesting an improvement of 13% year over year and earnings per share of $25.52, indicating an increase of 7% year over year. META currently has a long-term (3-5 years) EPS growth rate of 16.1%, well above the S&P 500's long-term EPS growth rate of 12.4%. Attractive Valuation of META Shares Meta Platforms currently carries a forward P/E of 23.22X for the current financial year, compared with 28.50X of the industry and 18.62X of the S&P 500. META has a return on equity of 38.69% compared with 0.38% of the industry and 16.92% of the S&P 500 Index. At present, the short-term average price target of brokerage firms for the stock represents an increase of 16.3% from the last closing price of $592.49. The brokerage target price is currently in the range of $466-$935. This indicates a maximum upside of 57.8% and a downside of 21.3%. Microsoft Corp. Microsoft's third-quarter fiscal 2025 earnings and revenues beat estimates driven by strength in AI business and Copilot adoption backed by accelerating growth in the Azure cloud infrastructure unit. Productivity and Business Processes revenues rose due to the strong adoption of Office 365 Commercial solutions. MSFT's ARPU growth was driven by E5 as well as M365 Copilot. MSFT's Intelligent Cloud revenues were driven by growth in Azure AI services and a rise in AI Copilot business. Focused execution drove non-AI services results aided by accelerated growth in the enterprise customer segment as well as some improvement in scale motions. MSFT's Xbox content and services revenues benefited from stronger-than-expected performance in third-party and first-party content. Microsoft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Microsoft came up with third-quarter fiscal 2025 earnings of $3.46 per share, beating the Zacks Consensus Estimate by 8.1%. MSFT posted revenues of $70.06 billion, surpassing the Zacks Consensus Estimate by 2.5%. For fiscal 2025 (ending June), the Zacks Consensus Estimate currently shows revenues of $278.6 billion, suggesting an improvement of 13.7% year over year and earnings per share of $13.30, indicating an increase of 12.7% year over year. MSFT currently has a long-term (3-5 years) EPS growth rate of 14.8%, well above the S&P 500's long-term EPS growth rate of 12.4%. Microsoft currently carries a forward P/E of 32.74X for the current financial year, compared with 17.57X of the industry and 18.62X of the S&P 500. MSFT has a return on equity of 32.74% compared with 17.57% of the industry and 16.92% of the S&P 500 Index. At present, the short-term average price target of brokerage firms for the stock represents an increase of 15.8% from the last closing price of $438.73. The brokerage target price is currently in the range of $448-$626. This indicates a maximum upside of 42.7% and no downside. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Malaysian Reserve
02-05-2025
- Business
- Malaysian Reserve
Locally-developed digital platforms can drive socioeconomic growth
By reducing reliance on foreign technology, Malaysia can enhance data security, economic retention and cultural alignment AS A step towards reducing dependence on foreign digital platforms, there have been suggestions for Malaysia to develop its own digital applications. Digital platforms are online systems or ecosystems that enable interaction, transactions and information exchange between users and businesses or services through digital technology. These platforms can take the form of a website, mobile application, software or online network that provides access to content, products and services. Examples of digital platforms include social media such as Facebook and Instagram; e-commerce (Shopee, Lazada, Amazon); digital services (Grab, FoodPanda); artificial intelligence (AI) and technology (ChatGPT, Google Bard); online learning; and digital banking and finance. Own Digital Ecosystem In August last year, Bernama quoted Minister of Communications Datuk Fahmi Fadzil as saying that the government will look into proposals to develop a dedicated social media application for Malaysians, similar to initiatives undertaken by other countries. He said foreign social media platform providers are profiting from Malaysian users while failing to ensure their security. Commenting on the matter, Malaysian Cyber Consumer Association deputy president Azrul Zafri Azmi said Malaysia should develop its own digital platforms to mitigate the risks of relying on foreign technology companies, which could potentially affect the nation's digital sovereignty. Citing a past incident when popular social media app TikTok — owned by a China-based company — restricted the accounts of several major Malaysian media outlets, he said this demonstrated how foreign companies have the power to determine what content Malaysians can and cannot access, even when it involves mainstream national media. Currently, profits from those foreign platforms flow out of the country, says Azrul (Source: Azrul Zafri's Instagram) 'If Malaysia has its own digital platforms for social media, e-commerce, and AI and technology, media freedom and public discourse can be better aligned with responsibility, ethics and national interests, thus preventing what is referred to as 'digital colonisation'. 'This is more about ensuring that we do not have to comply with foreign platform regulations beyond our own national laws,' he told Bernama recently. Azrul Zafri added that foreign platforms collect vast amounts of data from Malaysians, including their personal information, spending patterns and political preferences, pointing out that if this data falls into the wrong hands, it could be used for commercial exploitation or manipulation. It can even threaten the nation's stability, he said. 'Currently, profits from those foreign platforms flow out of the country rather than benefiting Malaysia's economy. If we establish our own digital ecosystem, this revenue can remain within the country, benefitting local companies and creating more job opportunities for Malaysians,' he said. AI should be built on data within Malaysia's cultural context rather than simply replicating Western models AI in Malaysian Context Azrul Zafri believes that Malaysia has a wealth of technology experts and digital talent, but many choose to work for foreign companies due to the lucrative salaries offered. Nevertheless, he added, several local companies have already proven their capabilities in the digital sector, including Carsome, South-East Asia's largest automotive e-commerce platform; Aerodyne, one of the world's leading drone and data technology companies; and a local social commerce platform supporting small and micro businesses without relying on foreign platforms. Discussing the key challenge of developing AI platform models that understand and support local languages and dialects, Azrul Zafri said AI should be built on data within Malaysia's cultural context rather than simply replicating Western models, which may not align with local values and culture. In this regard, he said, the government and the private sector and academics must collaborate to ensure that AI platforms developed in Malaysia truly benefit the people and the national economy. 'One major challenge is the lack of data as AI requires vast amounts of information to understand local languages and dialects. Currently, most global AI models do not prioritise Bahasa Melayu, let alone our local dialects. 'AI models must also be built on principles of transparency and fairness, and without bias towards any community group,' he said, adding Malaysia needs more experts in natural language processing to develop AI models that can understand the Malay language context more accurately. Developing AI models also requires strong computing infrastructure, including data centres and graphics processing units (GPUs) that are costly to set up. 'Many local companies still rely on foreign providers such as Amazon Web Services (AWS) and Google Cloud, which pushes up AI (platform) development costs,' he said, acknowledging that the development of such platforms demands significant investment in research and development (R&D). He also said Malaysia can ensure the safety and ethical use of local AI platforms through government policies that regulate their application and protect national security. This includes establishing a national AI monitoring body to assess security and privacy risks, and involving NGOs and academics in efforts to educate the public on digital literacy and cybersecurity awareness when using AI technology. Mohd Khairie asks if the development of the platforms is more economically or socially driven (Source: Refining Objectives Meanwhile, Universiti Utara Malaysia (UUM) School of Multimedia Technology and Communication dean Assoc Prof Dr Mohd Khairie Ahmad views the idea of developing proprietary digital platforms as an innovative initiative with the potential to drive the country's socio-economic growth. He, however, said the nation's main objectives of developing such platforms must be carefully refined. 'Is the development (of these platforms) more economically or socially driven? If the goal is to boost the economy, such as providing alternatives to existing e-commerce platforms, then it holds great potential. 'The existence of Malaysian e-commerce platforms will not only strengthen the local digital economy ecosystem, but also support efforts to improve and sustain local businesses. 'It will also enhance control over economic outflows while reinforcing national taxation,' he said. 'However, if the aim of introducing domestic digital platforms is for social control, particularly in social media, then its necessity must be examined more deeply. '(This is because) social control is closely tied to user behaviour. Establishing a local digital platform is just one strategy for managing these issues but not a complete solution,' Mohd Khairie added. He pointed out that Malaysia has had its own e-commerce platforms for over 25 years. 'Many people are unaware that (an e-commerce platform) has been in operation since 1998. Others include PGMall and Carousell Malaysia. 'These examples prove that Malaysia is indeed capable of offering its own digital platforms. It is certainly possible for our country to develop more innovative and expansive platforms in line with advancements in AI technology and the nation's proactive digital policies,' he said. According to Megat Zuhairy, transparent governance is crucial to develop strong digital ecosystem (Source: Media Mulia) Improving Cyber Security Sharing his views, National Cyber Security Agency (NACSA) CEO Dr Megat Zuhairy Megat Tajuddin said developing a proprietary digital platform, especially for social media, does not guarantee that cybersecurity issues can be fully addressed. However, he noted that with its own social media platform, Malaysia would have greater control over the cybersecurity aspects of the platform. 'For example, by having our own source code, we can review and identify vulnerabilities without relying too much on external parties. This allows us to take faster action to reduce risks for users,' he said. He believes the success of a locally developed digital platform will depend on three key elements: The availability of local experts with integrity and high skills; a clear framework and accountability process for all stakeholders; and stable, advanced and reliable technology. 'Transparent governance as well as cooperation between the public and private sectors are also crucial to develop a strong and complementary digital ecosystem. 'Malaysia can implement more effective identity control mechanism by requiring user verification through MyDigital ID. This step can reduce the misuse of digital platforms, including committing online fraud and spreading false information,' he added. — Bernama This article first appeared in The Malaysian Reserve weekly print edition
Yahoo
27-01-2025
- Business
- Yahoo
China's DeepSeek is AI's hot new thing. But what about censorship?
This story incorporates reporting fromBusiness Insider, Forbes, TechRepublic and The Daily a Chinese artificial intelligence startup, is getting significant attention in the global AI landscape with the release of its R1 model. This AI-powered chatbot has quickly positioned itself as a contender against Western counterparts like ChatGPT, Google Bard, and Meta's offerings. DeepSeek's R1 model claims to deliver advanced capabilities at a fraction of the cost of its U.S. rivals, making it an appealing option for cost-conscious users. However, the chatbot has also become a focal point for discussions on censorship due to the restrictions imposed by Chinese regulations. The release of DeepSeek's R1 model earlier this month marked a notable advancement in artificial intelligence technology. The chatbot's ascent has even caused fluctuations in the stock prices of major tech companies, indicating the potential market disruption DeepSeek poses. Users have praised the chatbot for its impressive performance, particularly in generating nuanced and conversational responses — features that demonstrate its advanced reasoning capabilities. Despite its technological achievements, DeepSeek's R1 model is not without its limitations. One of the primary criticisms it faces is its built-in censorship protocols. Like all AI products developed in China, DeepSeek is required to adhere to the 'socialist values' of the Chinese Communist Party. This means the chatbot must comply with strict government regulations, limiting discussions on sensitive topics, particularly those related to Chinese politics and governance. Such constraints highlight the broader implications of operating within the regulatory framework of China, as AI companies must navigate the delicate balance between innovation and compliance. DeepSeek's emergence has also sparked debates about the broader geopolitical implications of AI technology. The chatbot's alignment with Chinese values raises concerns about the role of AI in the dissemination of information and the potential for technology to be used as a tool for state propaganda. This is particularly relevant given the ongoing competition among global superpowers to dominate the AI industry. As DeepSeek continues to gain traction, its presence challenges the narrative predominantly controlled by U.S. tech giants, showcasing China's intent to establish itself as a leader in AI innovation. Interestingly, DeepSeek's appeal lies not just in its functionality but also in its affordability. The company behind DeepSeek has marketed the R1 model as a cost-effective alternative to American AI counterparts, raising eyebrows over its budget-friendly development. However, skepticism remains regarding the validity of these claims, especially in the absence of American-made AI chips, which are traditionally seen as essential components of high-performance AI models. As of now, DeepSeek ranks high on various metrics, including a notable position in the App Store leaderboard, signaling user enthusiasm and acceptance. By offering an option for slower but more comprehensive answers, the R1 model endeavors to meet the demands of users seeking detailed explanations. Nevertheless, the chatbot's rise underscores the complexity of marrying technological progress with political and ethical considerations. The ascent of DeepSeek highlights the evolving nature of the global tech space, characterized by rapid developments and shifting allegiances. As Chinese AI companies like DeepSeek gain prominence, the global community is prompted to reassess the dynamics of technological power and influence. Questions about the ethics of AI and the long-standing issue of censorship remain at the forefront of these discussions, challenging stakeholders to negotiate the competing demands of progress, affordability, and freedom of expression. With DeepSeek's continued innovation and expansion, it remains to be seen how the global AI industry will adapt. As China asserts itself more prominently on the world stage, the dialogue around AI's future — both technologically and ethically — will undoubtedly intensify. Quartz Intelligence Newsroom uses generative artificial intelligence to report on business trends. This is the first phase of an experimental new version of reporting. While we strive for accuracy and timeliness, due to the experimental nature of this technology we cannot guarantee that we'll always be successful in that regard. If you see errors in this article, please let us know at qi@ For the latest news, Facebook, Twitter and Instagram.
