Next stop for rallying Alphabet is the $200 area, according to the charts
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Trade deals fuel Wall Street gains while Trump renews Fed attack
Wall Street closed the week higher, with tech-heavy indices notching fresh records as upbeat corporate earnings, resilient macro data and breakthrough trade deals converged to boost risk appetite. The U.S. finalized new trade agreements with Indonesia, the Philippines and Japan. The Tokyo deal was the most significant, locking in a reduction in tariffs on Japanese autos and goods from 25% to 15%, while Japan pledged $550 billion in investment and improved access to American-made goods. A U.S.-EU trade deal is now reportedly close, expected to align with the Japan framework and potentially ease existing tariff rates ahead of the Aug. 1 deadline. Separately, President Donald Trump signed an executive order to boost the U.S. artificial intelligence sector by promoting the export of full-stack AI systems to trusted global partners. The White House said the move is aimed at strengthening economic leadership and national security. Among the week's strongest performers, Thermo Fisher Scientific rallied over 12%, topping the leaderboard for large-cap stocks, followed by T-Mobile US, up 9%. Within the Magnificent Seven, Alphabet rose by 1% after delivering better-than-expected results and raising its 2025 capex outlook by $10 billion, reinforcing its commitment to scaling AI infrastructure. More: S&P 500, Nasdaq 100 hit fresh highs as even retail scores wins over the week Tesla dropped 8.2% following cautious commentary from CEO Elon Musk, who warned that upcoming quarters could prove challenging amid rising costs and margin pressures. Economic indicators added fuel to the rally. U.S. business activity surprised to the upside, with the Composite Purchasing Managers' Index climbing to a seven-month high in July, helped by expansion in services and steady consumer strength. Trump's push to influence monetary policy continued with an unannounced visit to the Federal Reserve's headquarters in Washington, D.C. — the first by a sitting president in nearly 20 years. Wearing a hard hat alongside Fed Chair Jerome Powell, Trump criticized the central bank's renovation project, claiming costs had surged to $3.1 billion. Powell countered on the spot, clarifying that the real cost is closer to $2.5 billion, excluding unrelated construction. Pressed on rate policy, Trump said, 'I'd love to see him lower interest rates.' Markets now shift focus to the July 30 Fed meeting, where expectations remain anchored for a hold — but not without growing political heat. Benzinga is a financial news and data company headquartered in Detroit. This article originally appeared on Detroit Free Press: Trade deals fuel Wall Street gains while Trump renews Fed attack Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
31 minutes ago
- Yahoo
Alphabet Had a ‘Standout Quarter.' Should You Buy GOOG Stock Here?
Alphabet (GOOG) stock rose by just over 1% on July 24, despite the company beating Q2 estimates on nearly all metrics. In this article, we'll look at the key takeaways from Alphabet's Q2 earnings and examine whether it is a good buy. Alphabet's Q2 revenues rose 14% year-over-year to $96.4 billion, which easily surpassed the $94 billion that analysts were expecting. The company's per-share earnings came in at $2.31, which was also ahead of the $2.15 that analysts were modeling. More News from Barchart With a 5.6% Yield, This Dividend Aristocrat Pays Monthly. Is It a Buy Here? Dear Palantir Stock Fans, Mark Your Calendars for August 4 The 3 Buffett-Backed Dividend Stocks That Beat the Market in 2025 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Alphabet Beat on Most Metrics While it's customary for company management to say that they are 'proud' of their performance, Alphabet CEO Sundar Pichai began his commentary by classifying Q2 a 'standout quarter for us with robust growth across the company.' He added, 'As you saw at IO, we are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum.' Here are some of the other key takeaways from the report. Google Search Reported Double-Digit Increase in Revenues: With all the talk of Google losing its dominance in search, the company's Search revenues rose 11.7% in Q2, and if anything, the growth rate accelerated from the previous quarter. YouTube's Performance Improved: During the earnings call, Alphabet said that it now earns as much revenue per watch hour in the U.S. on YouTube shorts as traditional in-stream. In some regions, the balance is actually in favor of shorts over the long-form videos. During the quarter, YouTube ad revenues increased 13% YoY to $9.8 billion, which comfortably beat the consensus estimate of $9.56 billion. As I have noted previously, YouTube remains an unappreciated asset in Alphabet's arsenal even though it is the market leader in U.S. streaming for the last several years, per Nielsen data. Gemini User Count Swells: Alphabet said that Gemini's monthly active user is now more than 450 million, and it saw a 50% increase in daily requests in Q2, as compared to Q1. Cloud Growth Gets a Boost from AI: Google's cloud revenues rose 32% YoY to $13.62 billion, well ahead of the $13.11 billion that analysts were expecting. AI is driving the growth of that business. Microsoft-backed (MSFT) OpenAI has also partnered with Google's cloud infrastructure, a partnership CEO Sundar Pichai said the company is 'very excited' about. AI Monetization: As expected, questions related to the monetization of AI investments did pop up during the Q2 earnings call. Responding to the question, Pichai pointed to the strong operating margins despite the rise in AI capex, while reassuring, 'We'll be able to have a healthy ROI on our investments.' Alphabet's post-earnings price action might look at odds with its otherwise stellar earnings. However, the disconnect can be attributed to four main reasons. Firstly, the stock rallied heading into the Q2 confessional and is up 13.4% over the last month, which is the second highest among its 'Magnificent 7' peers, trailing only Nvidia (NVDA). Second, the increase in 2025 capex guidance by a whopping $10 billion to $85 billion did not sit well with the markets. Third, some market participants are still worried about the 'existential threat' to Google as the likes of OpenAI, Anthropic, and Perplexity challenge the status quo in search. Finally, there is the regulatory overhang as the U.S. Justice Department plans to break up Alphabet and force the company to divest its Chrome browser and Android operating system. It also wants the company to its end exclusive agreements with phone makers like Apple (AAPL) and Samsung. GOOG Stock Forecast After Q2 Earnings Sell-side analysts reacted positively to GOOG's Q2 earnings, and Oppenheimer, Pivotal Research, JPMorgan, and Raymond James were among the brokerages that raised the stock's target price following the report. Alphabet's Street-high target price of $250 implies potential upside of 29.4% over the next year. I believe GOOG stock has room to run higher given its tepid valuations. The stock trades at a forward price-earnings (P/E) multiple of just 20x, which is not only the lowest among its Big Tech peers, but also makes GOOG the only Magnificent 7 constituent that trades at a discount to the S&P 500 Index ($SPX). The depressed valuations are primarily due to the regulatory uncertainty, as well as concerns that the company might lose market share to AI chatbots like ChatGPT. However, Alphabet's Q2 earnings show that the company is yet to feel any meaningful impact from a flurry of competing products, and while these are still early days, so far Alphabet has handled the competition well. Alphabet also has services like Waymo, which will add long-term value, even as that business, which is part of its 'Other Bets' segment, is currently a drag on its profits, reporting an operating loss of $1.2 billion in Q2. Overall, despite the run-up over the last month, I find GOOG's risk-reward still attractive and believe that concerns over it losing out to AI rivals are a bit overblown. On the date of publication, Mohit Oberoi had a position in: GOOG, TSLA, NVDA, MSFT, AAPL. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
2 hours ago
- Yahoo
The Real Reason Quantum Computing Stocks Are Soaring (It's Not What You Think)
Key Points Government mandates to prepare for quantum computer attacks on current encryption have validated the quantum threat, transforming pure-play companies from speculative investments to strategic national assets. While Wall Street focuses on breakthrough announcements and artificial intelligence (AI) applications, the urgent cybersecurity validation represents a fundamental shift in how investors perceive quantum computing companies. The $7.1 billion in federal post-quantum cryptography spending primarily flows to cybersecurity firms, but also creates powerful indirect benefits for quantum hardware companies through partnerships, funding, and increased credibility. 10 stocks we like better than IonQ › Wall Street loves a good narrative, and quantum computing stocks have delivered several over the past year. Alphabet demonstrated breakthrough quantum capabilities with its Willow processor in late 2024, triggering a surge of investment into companies promising to solve optimization problems and accelerate drug discovery. But the surface-level excitement misses the real story: The quantum surge isn't primarily driven by these breakthroughs or potential AI synergies. The true catalyst is an urgent, government-mandated cybersecurity crisis that has transformed quantum computing from a speculative technology into a validated strategic threat. "Q-Day" -- the hypothetical moment when quantum computers can break current encryption -- has moved from academic theory to operational emergency, providing powerful validation for the entire ecosystem. The performance of pure-play quantum stocks tells the story. IonQ (NYSE: IONQ) has gained 423% over the past 12 months, D-Wave Quantum (NYSE: QBTS) has surged over 1,700%, and Rigetti Computing (NASDAQ: RGTI) has jumped more than 1,300%. These aren't typical tech stock rallies -- instead, they signal the market's definitive recognition that quantum computing has evolved from a laboratory curiosity to a validated national security priority. The encryption emergency driving quantum validation The National Institute of Standards and Technology (NIST) released the first three post-quantum cryptography standards in August 2024, including CRYSTALS-Kyber for key establishment and CRYSTALS-Dilithium for digital signatures. Rather than academic exercises, NIST delivered operational blueprints for defending against quantum computer attacks that could render current encryption worthless within a decade. Government response has moved far beyond research grants. The Office of Management and Budget has issued binding directives requiring all federal agencies to inventory cryptographic systems and develop transition plans. The White House estimates the federal transition alone will cost $7.1 billion between 2025 and 2035, representing massive spending on quantum-resistant cybersecurity solutions that will primarily benefit established cybersecurity firms and cloud providers rather than pure-play quantum companies. However, this urgent government validation of the quantum threat has created powerful tailwinds for the entire quantum ecosystem. John Young, chief operating officer at Quantum eMotion America, warns that "most businesses remain dangerously unprepared for Q-Day," while government agencies face compliance deadlines. This recognition that quantum computers represent an existential cybersecurity threat has transformed investor perception of quantum hardware companies from speculative science projects to strategic national assets. Pure-play companies capture the quantum opportunity IonQ has emerged as the highest-profile beneficiary despite challenging fundamentals. The company reported $7.6 million in first-quarter revenue, essentially flat year over year, while posting a $32.3 million net loss. However, IonQ maintains $697 million in cash and recently completed a $1 billion equity offering, providing substantial runway for continued development and acquisitions across quantum computing and networking. D-Wave Quantum has taken a different commercial approach, focusing on quantum annealing technology for specific optimization problems. First-quarter results demonstrated viability, with revenue reaching $15 million -- a 509% year-over-year increase driven by system sales and cloud access programs. The company's quantum-computing-as-a-service model allows organizations to access quantum capabilities without massive capital investments. Meanwhile, Rigetti Computing represents the highest-risk option, with its full-stack approach combining processor development, system integration, and cloud services. However, recent results show execution challenges: First-quarter revenue declined to $1.5 million from $3.1 million, while operating expenses totaled $22.1 million. The company's 84-qubit Ankaa-3 system represents a technological milestone, but converting achievements into sustainable revenue remains unproven. Yes, but speculation risks remain elevated All three companies trade at extreme valuations that price in flawless execution and rapid market adoption. IonQ trades at approximately 219 times trailing sales, while D-Wave and Rigetti command similarly premium multiples. The quantum computing market remains early stage, with limited commercial applications and uncertain technology winners. Technical breakthroughs from well-funded competitors, including IBM, Alphabet, and Microsoft, could disrupt smaller players' market positions. Current quantum systems remain error-prone and expensive, limiting commercial viability outside specialized use cases. Investment in pure-play quantum stocks requires tolerance for extreme volatility and extended development timelines. Capitalizing on quantum's validation moment The government's urgent preparation for Q-Day has transformed quantum computing from speculative technology to validated strategic necessity. While the $7.1 billion in federal post-quantum cryptography spending will primarily flow to cybersecurity firms and cloud providers implementing defensive solutions, this massive investment validates the quantum threat and elevates pure-play quantum companies from laboratory curiosities to strategic national assets. Yes, the valuations are extreme, and the fundamentals remain challenging. Quantum computing remains a small, speculative subsector with limited current commercial applications, and predicting which companies will ultimately dominate this emerging technology remains impossible. But the Q-Day validation provides a real catalyst that has shifted investor perception and could accelerate development timelines. For investors seeking exposure to this validation story, a diversified approach across the quantum landscape offers the best risk-adjusted opportunity. Consider allocating a small speculative portion of growth portfolios across the major pure-play names: IonQ for its comprehensive approach and strong balance sheet, D-Wave for its early commercial traction, and potentially Rigetti for its full-stack development strategy. This approach acknowledges the difficulty of picking winners in an emerging technology while capturing potential upside as the space transitions from government validation to broader commercial adoption. Should you buy stock in IonQ right now? Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ 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 $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% 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 George Budwell has positions in D-Wave Quantum, IonQ, Microsoft, and Rigetti Computing. The Motley Fool has positions in and recommends Alphabet, International Business Machines, 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. The Real Reason Quantum Computing Stocks Are Soaring (It's Not What You Think) was originally published by The Motley Fool
