Latest news with #Alphabet
Globe and Mail
3 hours ago
- Business
- Globe and Mail
1 Reason to Buy Alphabet
Key Points Alphabet's massive market cap and huge revenue base make it one of the most closely watched businesses. As a stand-alone company, YouTube might be worth more than Netflix. The current valuation presents investors with a buying opportunity. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) is a $2.3 trillion business that generated a whopping $96 billion in revenue in the latest quarter. This is a massive internet enterprise that has its hands in all areas related to technology. And it should continue to be a dominant force. As of July 25, shares trade at a very compelling forward price-to-earnings ratio of 20.2. The valuation supports one key reason that investors should consider buying this "Magnificent Seven" stock right now. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Press play on YouTube This high-quality company deserves a spot in your portfolio because it appears to be undervalued. Looking at different segments paints a clearer picture. YouTube provides a perfect example. The video streaming service has an estimated 2.5 billion monthly users. It raked in $9.8 billion just in ad revenue in the second quarter, a figure that excludes subscription sales -- an important factor. And even better, as a two-sided platform, YouTube possesses a very powerful network effect. Netflix currently sports a market cap of $502 billion. It's easy to argue that YouTube is worth at least this much, if not more. The latter commands 12.8% of daily TV viewing time in the U.S., well ahead of Netflix's 8.3% share. Other parts of the empire Alphabet has other operating segments under the hood. There's Google Search, the company's crown jewel that represented 56% of total revenue in Q2. Don't forget about Android and Chrome. And Waymo, the autonomous driving division, could be a major financial contributor if adoption continues to grow. If regulatory actions force the company to break up, investors might still win out in the end. Of course, these different platforms all work better together, with technological know-how, data, and other resources being shared between them to make the whole business stronger. Nonetheless, Alphabet's attractive valuation is a top reason to buy shares. 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 10 best stocks 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 $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of July 29, 2025
The Market Online
7 hours ago
- Business
- The Market Online
Why Celestica stock has been on a tear as of late
Celestica is a technology leader in design, manufacturing, hardware and supply chain solutions with a global presence spanning North America, Europe and Asia, and a client roster featuring some of the world's biggest brands The company's growing role as a data centre service provider has propelled revenue and profits higher since ChatGPT hit the scene in 2022 Celestica stock has soared in response, adding more than 1,700 per cent When OpenAI launched ChatGPT in 2022, it unleashed a global wave of interest and capital into artificial intelligence (AI), with companies across the industry spectrum scrambling to increase computing power and develop AI models to reach newfound levels of operational efficiency. This content has been prepared as part of a partnership with Celestica Inc., and is intended for informational purposes only. This frenzy has attracted some of the largest companies in the world, including Amazon, Alphabet and Meta, propelling each of them to multi-trillion-dollar market capitalizations, with Alphabet estimating that it will spend US$85 billion in 2025 on computing and AI to compete on the leading edge of data processing power. AI demand has also been favorable to picks-and-shovels players that have proven themselves to be reliable suppliers for the data centers developers need to test and deploy their projects. As a result, investors have candidates for due diligence for days, with US Money News and Yahoo! Finance hosting the most-viewed lists of prospective stocks on Google as of July 29. One supplier both fail to mention, Celestica (TSX:CLS), market capitalization C$32.16 billion, Canada's third-largest technology company, is a model for how strategic industry alignment can translate into shareholder value, with the stock having added more than 100 per cent year-to-date, more than 300 per cent year-over-year and more than 1,700 per cent since ChatGPT's debut, thanks to: Pre-ChatGPT data centre servicing contracts with Amazon, Alphabet and Meta. Margin expansion thanks to a shift towards proprietary products, following the arrival of chief executive officer Rob Mionis in 2015, with 43 per cent of its current line designed in house. A diversified client base across aerospace and defense, communications, enterprise, health technology, industrial and capital equipment. A turnkey service offering, from design to manufacturing to hardware platforms to supply chain solutions and full-scale production. The fact that AI, nascent as it may be, is delivering tangible value to companies across the board, saving time and resources, differentiating value propositions and pushing stock prices higher. Celestica has parlayed its prime position into impressive financials over the period, generating US$7.96 billion in revenue in 2023 and US$9.64 billion in 2024, backed up by net income of US$244.4 million and US$428 million, respectively, driven by rapidly accelerating demand. Q1 and Q2 2025 have been similarly value-accretive, delivering US$2.65 billion and US$2.89 billion in revenue, coupled with net income of US$86.2 million and US$211 million, respectively, with a robust demand outlook prompting the company to increase 2025 guidance twice over the period. The company expects to generate US$11.55 billion in revenue for the year, up from US$10.85 billion, and non-GAAP adjusted earnings per share of US$5.50, up from US$5. Celestica is further differentiated by pricing power. As confirmed in the Q2 news release, the company is positioned to recover almost all tariffs paid under US President Trump's regime from its customers, with no expected material impact to non-GAAP adjusted operating earnings or non-GAAP adjusted net earnings, demonstrating the insatiable demand for AI functionality running its way through every imaginable market. As Mionis put it in the Q2 earnings call, 'we continue to anticipate another year of solid financial performance for Celestica in 2025,' remaining 'confident in our ability to continue our strong momentum, even with the uncertainty in the current macro environment,' adding that 'we believe we are positioned to continue to excel and to sustain this positive momentum into 2026 and over the long term.' Given the multi-year upside potential at play with Celestica, investors have a chance to buy into what may prove to be a value price, despite what the company's share price of C$277.95 and price-to-earnings ratio of 46.5 may suggest at first glance. Join the discussion: Find out what investors are saying about this AI stock on the Celestica Inc. Bullboard, and make sure to explore the rest of Stockhouse's stock forums and message boards. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
Yahoo
7 hours ago
- Business
- Yahoo
Microsoft Stock Hits All-Time High Ahead of Q4, And Wall Street Still Sees Room for MSFT to Run
Microsoft (MSFT) will announce its fourth quarter fiscal 2025 earnings on July 30. Investors have been bullish ahead of the results, driving the stock to a record high of $518.29 on July 25. So far in 2025, shares are up a robust 21.5%, powered by strong demand for Microsoft's cloud and artificial intelligence (AI) offerings. This recent rally has pushed Microsoft's valuation higher. However, analysts remain confident there's still room for upside, especially as global demand for cloud services and generative AI solutions continues to accelerate. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Recent quarterly results from Alphabet (GOOGL), which reported robust growth in its own cloud and AI solutions, have only added to the positive sentiment surrounding Microsoft. Like Alphabet, Microsoft is deeply embedded in the AI and enterprise cloud landscape, and it's benefiting from similar tailwinds. For instance, Microsoft Cloud brought in more than $42 billion in revenue in Q3, a 22% increase. This reflected strong and growing demand for its solutions. Furthermore, Microsoft's AI portfolio is also gaining traction, with its AI-related revenue climbing steadily. The company has also been aggressively expanding its infrastructure to meet this rising demand. Its ongoing investments in data center capacity are designed to keep pace with the AI boom and ensure it can support future growth. In short, Microsoft's leadership in both AI and cloud will continue to pay dividends in Q4, driving its financials. With strong tailwinds behind it, Microsoft could once again deliver solid quarterly revenue and earnings. Microsoft Q4 Earnings: Cloud and AI Set to Lead Growth Microsoft is poised to report another strong quarter, with its fourth-quarter financials expected to reflect continued momentum mainly driven by its cloud and AI offerings. In the Productivity and Business Processes segment, Microsoft anticipates revenue between $32.05 billion and $32.35 billion, representing double-digit growth. This growth is expected to be supported by steady demand for Microsoft 365 (M365) Commercial cloud services. Revenue in this category is projected to rise around 14%, with average revenue per user benefiting from greater adoption of premium offerings such as E5 and AI-enhanced M365 Copilot. Additionally, small and medium-sized businesses continue to drive the expansion of Microsoft's customer base. M365 Commercial product revenues, which include more traditional software purchases like Office and Windows on-premises components, are expected to see moderate mid-single-digit growth. M365 Consumer cloud, however, is likely to grow in the mid-teens, aided by the price increase introduced in January. LinkedIn is poised to deliver high single-digit growth, buoyed by increasing member engagement and platform expansion. Meanwhile, Dynamics 365 is expected to see revenue grow in the mid to high teens, with strong demand across all workloads. The Intelligent Cloud segment, a significant growth engine for Microsoft, is projected to generate revenue between $28.75 billion and $29.05 billion, up 20% to 22% in constant currency. Much of this will be fueled by strong demand for Azure, with revenue in the cloud platform anticipated to rise 34% to 35%. Azure's non-AI services are growing steadily, but AI services are expanding even faster. Conversely, the on-premises server business is expected to decline in the mid-single digits as more customers shift to cloud-based solutions. Enterprise and partner services should grow in the mid to high single digits, driven by steady demand for support services. In the More Personal Computing segment, revenue is forecasted between $12.35 and $12.85 billion. Windows OEM and Devices revenue are likely to decline, reflecting ongoing normalization in inventory and weak device demand. Still, Search and news advertising is a bright spot, with revenue growth expected in the mid to high teens, supported by gains across Edge and Bing. Gaming revenue should rise modestly, with Xbox content and services growing in the high single digits thanks to first-party titles. Despite pressure on margins due to AI infrastructure investment, Microsoft's earnings are expected to remain strong. Analysts project EPS of $3.35, up 13.6% year-over-year. Given Microsoft's consistent track record of exceeding expectations, Q4 may once again deliver upside for investors. What Is the Potential Upside for Microsoft Stock? With its strong positioning in cloud computing and AI, Microsoft is well-positioned to deliver another impressive quarter. Wall Street is bullish about MSFT stock ahead of Q4 earnings with a consensus rating of 'Strong Buy.' One of the highest price targets on the Street is $626, suggesting MSFT stock could climb about 22% from its current price. On the date of publication, Sneha Nahata did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
8 hours ago
- Business
- Yahoo
Alphabet's (GOOGL) AI Strategy Drives Growth — But Analysts Still See Breakup Potential
Alphabet Inc. (NASDAQ:GOOGL) is one of the . On July 24, DA Davidson analyst Gil Luria raised the price target on the stock to $180 from $160 and kept a 'Neutral' rating on the shares. According to the analysts, Alphabet's Q2 earnings were better than expected, with an acceleration in revenue across the board. The firm highlighted how Alphabet's management is continuously highlighting the positive impact of their 'full-stack AI approach.' This approach is helping in adoption across the company's various business lines. The company's Search business has witnessed double-digit growth, reflecting on the strong quarter that it has had. Google Cloud has also been accelerating, which has further contributed to the positive results. Pixabay/Public Domain However, the firm continues to believe that breaking up the business would allow investors to own the components that they desire. It would also help them unlock additional shareholder value currently not reflected in the entity that is currently combined. Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. 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
8 hours ago
- Business
- Yahoo
Alphabet's AI Push Is Accelerating -- Is the Stock a Buy Now?
Key Points Alphabet turned in a strong quarter, led by cloud computing growth. Its Google search business saw growth accelerate in the quarter, helped by its AI Overviews. The stock is cheap for a company with a lot of opportunities ahead. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) once again defied its critics who continue to believe the company will be a loser in artificial intelligence (AI). Not only did the company once again produce strong search revenue growth in its most recent earnings report, but that growth accelerated. In addition, Alphabet said that AI was positively impacting every part of its business. With cloud computing demand continuing to surge, the company upped its capital expenditure (capex) budget by an additional $10 billion to build out its data center capacity. It said in its Q2 earnings report that it now plans to spend $85 billion in capex this year, and anticipates spending even more in 2026, given the strong demand it's seeing for Google Cloud products and services. AI driving growth AI was the biggest growth driver behind Alphabet's strong results, with cloud computing once again leading the way. Google Cloud revenue surged 32% to $13.6 billion in the second quarter, while segment operating income skyrocketed from $1.2 billion a year ago to $2.8 billion. However, the company said its current capacity constraints could extend into 2026, despite its large capex investments. Ultimately, that's not a bad problem to have, as it's just a sign of how strong demand is. Alphabet called out its Gemini 2.5 models as catalysts for growth, saying that 9 million developers have now built with Gemini. It also noted how leading AI research labs are turning to use Google's Tensor Processing Units (TPUs) as their AI chips of choice. While cloud computing is leading the way with growth, all eyes continue to be on Alphabet's core Google Search business. On that front, the company once again delivered. Google Search revenue climbed 12% to $52.2 billion, which was an acceleration from the 10% growth it saw in Q1. Alphabet said over 2 million people in more than 200 countries use AI Overviews monthly, while AI Mode has over 100 million monthly active users, despite only being launched in the U.S. and India so far. It said that AI is contributing significantly to increased search usage, with AI Overviews now driving over 10% more queries globally. Meanwhile, the Gemini app now has more than 450 million monthly active users. Alphabet said the number of daily requests on the app jumped over 50% sequentially. The company also called out its strength in multimodal search, with Google Lens and Circle to Search. It said visual searches grew 70% year over year, and that many are shopping queries. YouTube continues to deliver strong results, with ad revenue rising 13% to $9.8 billion. YouTube, along with Google One (cloud storage) and Music, also helped drive a 20% increase in subscription and device revenue to $11.2 billion. The company said Shorts are becoming a significant contributor, and that the format allows for more ad opportunities on average. It recently introduced Veo 3 to Shorts; the AI tool can create videos from photos and add generative effects to make content creation easier on the platform. Alphabet is also continuing to expand its Waymo robotaxi business. It recently launched in Atlanta and is currently testing the service across 10 cities, including New York and Philadelphia. It hopes to launch the service in all 10 cities in the near future. Overall, Alphabet grew total quarterly revenue by 14% (13% on a constant currency basis), to $96.4 billion. Earnings per share jumped 22% year over year to $2.31. The results easily surpassed analyst consensus estimates (as compiled by LSEG), which were looking for EPS of $2.18 on revenue of $94 billion. Looking ahead, Alphabet said it was cautious on the advertising outlook because it's lapping strong spending in the financial services vertical last year and will see no benefit from political ad spending this year. However, it does expect to see a tailwind in Q3 from current foreign exchange rates. Is it time to buy the stock? Alphabet yet again turned in a strong quarter, demonstrating that the company is on track to be an AI winner. It continues to see solid growth in its search business, though its new AI Mode is currently only in two countries. Gemini has become a top AI model. And with the huge distribution edge it has with the Chrome browser and Android operating system, the company is well positioned in a shifting AI-search landscape. At the same time, Google Cloud continues to be a monster, generating robust revenue growth; it has scaled up to the point that it now has incredible operating leverage. Throw in the strength at YouTube and the emerging Waymo robotaxi business, and Alphabet is cooking. Best of all, you can still get into Alphabet stock on the cheap. The stock only trades at a forward price-to-earnings ratio (P/E) of around 19 times 2025 analyst estimates, and a forward price/earnings-to-growth ratio (PEG) of 0.8. (Stocks with PEG ratios below 1 are typically considered undervalued.) With AI helping drive growth and Alphabet's AI push only accelerating, now is a great time to buy the stock. 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% 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 July 21, 2025 Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Alphabet's AI Push Is Accelerating -- Is the Stock a Buy Now? 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
