Waymo is a bright spot in the Google story, says Truist's Youssef Squali
Youssef Squali, Truist Global head of internet and media, joins 'Squawk on the Street' to discuss Alphabet post earnings.
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Miami Herald
20 hours ago
- Miami Herald
Jim Cramer says these hot new stocks are ones to watch
The first half of 2025 has been an intense year for investors, to put it mildly. With the introduction of President Donald Trump's tariffs on April 2, the stock market plummeted as businesses and investors alike considered the potential effect the levies would have - and that many businesses could be devastated by them. Don't miss the move: Subscribe to TheStreet's free daily newsletter Specific tariffs, such as Trump's original 145% levy on China, would have an enormous negative impact on countless companies across a variety of sectors, including tech, retail, automotive, and more. Trump's announcement on April 9 of a 90-day pause on reciprocal tariffs was the first of many signals that perhaps the potential economic disaster might be avoided. Since then, the president has flip-flopped on many of his original promises, leading investors to hope that perhaps things would turn out okay after all. Related: Analysts unveil bold forecast for Alphabet stock despite ChatGPT threat And that trend continues in May, as the U.S. stock market has returned more than 6%. Despite gaining momentum, however, the climate is still uncertain, leaving many investors unsure if they should keep their holdings or make moves. CNBC's Jim Cramer weighed in on that very topic this past week with some good advice for those who are skeptical about how to proceed in the light of the trade war. On a recent episode of "Mad Money," Cramer shared an essential tip for those who are worried about their portfolios. "You can learn a lot about a market from looking at the stocks that make it to the 52-week high list," he said. "It's a rarefied group by nature, and it speaks loudly about what works and, of course, what doesn't," he said. Cramer is referring to a list of stocks that have hit 52-week highs, indicating their ability to persevere even through severe headwinds. Related: Veteran analyst says stock market rally not 'real' until this happens A few of the current companies on the list include semiconductor maker Broadcom, hard drive maker Seagate, cooling systems company Johnson Controls, media streaming services Netflix and Spotify, and uniform maker Cintas. A few more of the companies on the list that may be worth checking out are DoorDash, eBay, Roblox, GE Aerospace and Mosaic. "At the end of the day, this new high list is an eclectic group of stocks, mostly geared to U.S. venues. That makes sense, given the trade war," Cramer said. "I'd be a buyer of any of these names down 5 to 8% from these levels. That is my favorite percentage to start a position on a red hot stock, and not before then." While the list is a handy way to keep an eye on stocks performing over the long term, Cramer doesn't translate that to an instant buy just because something stays on the list. "The best way to target stocks on the list is to be patient and find a high-quality stock that is seeing a temporary pullback," Cramer said. However, he did stress that the list is an incredible tool to monitor the market. "Poring over the 'new high' list is a fabulous way to identify potential, and I stress that word, potential stocks to buy," Cramer said. "You only buy stocks that have pulled back from the 'new high' list if you're confident they'll make a comeback for substantive reasons unrelated to the broader market." Related: Jim Cramer sends a blunt message on Microsoft layoffs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
a day ago
- Yahoo
Alphabet to Expand Engineering Ranks Through 2026
Alphabet (NASDAQ:GOOG) CEO Sundar Pichai vows to keep hiring engineers into 2026 as AI investments ramp, saying human talent remains crucial amid Google's $100 billion-plus AI push. Speaking at Bloomberg Tech in San Francisco, Pichai said engineering headcount will grow from current levels into next year, believing more engineers will boost productivity by automating mundane tasks. The comments come as peers retrench: Microsoft (NASDAQ:MSFT) cut hundreds of roles after its largest layoff in years, and Intel (INTC) joined the wave, with 137 tech companies shedding 62,114 jobs so far in 2025 per Though Google itself has trimmed staff in recent years, Pichai argued AI still makes fundamental coding errors, underscoring the need for engineers to oversee model development. Are we on an absolute path to AGI? I don't think anyone can say for sure, he said, highlighting uncertainties around artificial general intelligence. As Google integrates AI more deeply into Search, publishers fear traffic losses from AI-generated answers, but Pichai assured that Google will continue directing users to websites. We designed AI Overviews to prioritize high-quality outbound links, and years from now that's how Google will work, he noted. Although tech layoffs have eased, sector cuts underscore headwinds. Pichai's emphasis on engineering investment signals that Alphabet sees personnel as a moat against rivals. Meanwhile, Meta Platforms' (NASDAQ:META) CTO Andrew Bosworth said Silicon Valley is now more open to supporting U.S. military projects, referencing Meta's partnership with Anduril Industries to supply XR gear for the Army. Investors should watch whether Alphabet's engineering investments pay off as rivals cut costs, because talent retention could determine AI competitiveness. Investors will eye Alphabet's Q2 earnings and headcount data when reported next month. This article first appeared on GuruFocus. 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
a day ago
- Yahoo
3 No-Brainer Artificial Intelligence (AI) Stocks to Buy on the Dip
Amazon's cloud computing platform is seeing a huge boost from its AI business. Taiwan Semiconductor forecasts phenomenal growth over the next five years. Alphabet's stock has been beaten down despite solid results. 10 stocks we like better than Amazon › Although the market has recovered from its April lows over the past few months, a handful of dominant artificial intelligence (AI) stocks are still well off their all-time highs. The future is still bright for many of these companies, and I think now is an excellent time to scoop up some of these stocks while they're still down. Three stocks that are still down at least 10% from their all-time highs that look like strong picks right now are Amazon (NASDAQ: AMZN), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). I think buying shares of this trio could be a winning move for investors, and now is an excellent time to initiate a position. When investors hear Amazon, they don't automatically think about AI, but they should. Amazon has deployed AI throughout its business, but that's not the reason I consider Amazon an AI stock. Amazon gets a large chunk of its profits (63% in the first quarter) from Amazon Web Services (AWS), its cloud computing business. AWS is a massive beneficiary of the AI movement, as its servers are excellent places to run AI workloads on, especially when the client lacks the resources or workloads to justify buying their own supercomputer. That encompasses nearly all companies, except for the AI hyperscalers, and there are still a lot of AI applications to be deployed at an average business. This bodes well for Amazon, as AWS is the most critical part of its company, given how much it contributes to its profitability. Amazon saw net sales in its AWS segment in the first quarter grow 17% from a year ago, with operating income increasing even faster at a 23% pace. It's critical for Amazon to accelerate this business unit. If it can achieve that, it will have an outsized effect on Amazon's overall profit picture. The current environment is favorable for AWS, so investors shouldn't be surprised if Amazon's stock continues to rebound as long as AWS posts solid results. With Amazon stock down around 14% from its all-time high, it still looks like a great value. Few companies are as critical to modern technology as Taiwan Semiconductor Manufacturing (TSMC). Taiwan Semi is a chip foundry and fabrication facility for a wide client base. If you have a high-technology device (like a laptop or cellphone), chances are it has a chip from Taiwan Semiconductor. As a supplier to nearly everyone in the chip industry, TSMC has valuable insights into where the industry is headed. Management is incredibly bullish on its long-term prospects. It projects AI-related revenue will approach a 45% compounded annual growth rate (CAGR) over the next five years, with overall revenue increasing at a nearly 20% rate. That's an incredible projection, yet it isn't baked into the stock price. TSMC trades for a meager 21.1 times forward earnings, which is less than the broader market (as measured by the S&P 500, which trades at 22.4 times forward earnings). With Taiwan Semiconductor projecting market-crushing growth, yet valued at less than the market, it seems like an excellent bargain to scoop up right now. Alphabet is an even more extreme example of being cheaper than the market. Its stock trades at a low price tag of 18 times forward earnings. This is despite excellent Q1 results, where Alphabet delivered 12% revenue growth and 49% growth in diluted earnings per share (EPS). If you combine Alphabet's cheap stock price and strong growth, the stock seems like an absolute no-brainer buy. But there's more to the story. Investors are worried about three things with Alphabet's stock -- economic headwinds, the possibility of AI cutting into Google's dominance in search, and federal lawsuits that could eventually result into Alphabet spinning part of the company off. Those three items have dampened the outlook for Alphabet's stock and caused it to trade at a cheap valuation. I think the economic headwind and AI replacement theory are way overblown, and Alphabet can weather the storm through product innovation and best-in-class advertising locations. The government breakup threat is real, but spin-offs tend to unlock value for companies. So, a government breakup of Alphabet could still be a positive action for shareholders. Regardless of how things shake out, I believe Alphabet looks like a phenomenal value. Investors should buy shares on the dip as very few bullish voices remain on Alphabet's stock -- which is normally a great sign to buy. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon 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 $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. 3 No-Brainer Artificial Intelligence (AI) Stocks to Buy on the Dip was originally published by The Motley Fool
