Latest news with #Alphabet
The National
41 minutes ago
- Business
- The National
US judge to hear closing arguments before deciding penalty in Google antitrust case
A federal judge is set to hear closing arguments on Friday before determining how he will punish Google for illegally maintaining a search engine monopoly. The case, brought by the US government, could throw Google's expansion plans into turmoil just as it looks to strengthen its artificial intelligence offerings. District Judge Amit Mehta last year sided with the US Justice Department and ruled that Alphabet-owned Google had been illegally exploiting its dominance in the search sector to stifle competition, ultimately harming consumers with less choice. Last month, the trial moved into a second phase, with Mr Mehta listening to technology executives, economists and regulatory experts as he considers what penalty he will levy against Google. His decision could be one of the most consequential in technology regulation since 1982, when the Department of Justice broke up AT&T's monopoly through its Bell telephone system. Another landmark case came in 2000 when a judge found that Microsoft breached antitrust laws by engaging in predatory practices. The Justice Department wants Mr Mehta to enact far-reaching penalties that would be a warning to other companies. Prosecutors want Google to divest its popular Chrome browser from its portfolio, and it wants the tech giant to share coveted search data with competitors. The department also wants to end the lucrative deals arranged by Google where it pays companies such as Samsung and Apple to make Google's search tool the default option on devices. Mark MacCarthy, a senior fellow at the Institute for Technology Law and Policy at Georgetown University in Washington, has studied antitrust policy for several decades. He said Google's ubiquitous presence presents the judge with a unique challenge. Mr MacCarthy voiced concerns that a court-ordered requirement for Google to share users' search data could see companies exploit that information without people's consent. Forcing Google to share data "would require unprecedented co-operation among the courts involved", he said. 'My view is that this would be better done by a new digital regulatory agency.' Google has been pushing its own proposed remedies. These are far lighter than those proposed by the department, including a solution that would give users the ability to change their default search provider at least every 12 months. 'Our proposal allows browsers to continue to offer Google Search to their users and earn revenue from that partnership … but it also provides them with additional flexibility,' Google said, adding that it would give options to hardware sellers to make deals with other search engines. 'Browser companies like Apple and Mozilla should continue to have the freedom to do deals with whatever search engine they think is best for their users.' Google has also proposed what it described as a 'robust mechanism' to ensure that it would comply with the proposed remedy. The case playing out in Washington is not the only legal battle Google is fighting. The tech giant is appealing against part of a recent ruling that found it unfairly used its internet advertising dominance and crushed competitors. In that case, both Google and the government are trying to shape what remedy will ultimately be decided. The worst-case scenario for Google in that case could be that it is forced to spin off its advertising technology division, which would mean the loss of a significant amount of revenue for the search engine. Perhaps more importantly, whatever ensues could have ripple effects across the technology ecosystem revolving around Google. Eric Mulheim, chief financial officer of Mozilla, maker of the Firefox web browser, spoke about that shortly after testifying in the antitrust remedy trial. 'We believe the court should ensure that small and independent browsers are not harmed in any final remedies,' Mr Mulheim said, referring to Mozilla's paid partnership with Google that could be threatened by what the judge decides. 'Without this, we risk trading one monopoly for another, and the vibrant, people-first web we've spent decades fighting for could begin to fade." In a separate court filing, Mozilla pushed for a 'more tailored' approach to whatever remedies are decided on, that will not affect independent web browsers. Even with so much legal scrutiny, in terms of influence, market share and revenue, Google is still a force to be reckoned with. To regulators, that is the whole point, and the legal walls seem to be closing in. On Friday, however, both Google and the department have one more chance to influence the final decision as Mr Mehta considers closing arguments.
Yahoo
2 hours ago
- Business
- Yahoo
Alphabet (GOOGL) Stock Moves -0.31%: What You Should Know
Alphabet (GOOGL) closed the most recent trading day at $172.36, moving -0.31% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.51%. Heading into today, shares of the internet search leader had gained 7.95% over the past month, lagging the Computer and Technology sector's gain of 11.21% and outpacing the S&P 500's gain of 7.37% in that time. Analysts and investors alike will be keeping a close eye on the performance of Alphabet in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.12, reflecting a 12.17% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $78.86 billion, up 10.51% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $9.47 per share and revenue of $323.73 billion, which would represent changes of +17.79% and +9.69%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.73% higher. Alphabet is currently a Zacks Rank #3 (Hold). From a valuation perspective, Alphabet is currently exchanging hands at a Forward P/E ratio of 18.26. This indicates a discount in contrast to its industry's Forward P/E of 19.93. We can also see that GOOGL currently has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GOOGL's industry had an average PEG ratio of 1.37 as of yesterday's close. The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Times
3 hours ago
- Business
- Business Times
Salesforce says AI has reduced hiring of engineers and customer service workers
[NEW YORK] Salesforce said the use of artificial intelligence (AI) tools internally has allowed it to hire fewer workers, another example of a company changing its hiring plans due to the emerging technology. 'We have reduced some of our hiring needs,' chief financial and operations officer Robin Washington said on Wednesday (May 28) on a call with analysts, citing the implementation of AI tools. For example, she said that 500 customer service workers would be redeployed to different roles within the company this year, saving US$50 million. Tech companies are relying on AI to help with everything from customer service to software engineering. Job cuts at Microsoft earlier this month fell hardest on software engineers. Leaders of Microsoft and Alphabet said that AI is producing about 30 per cent of new code on some projects. For years, social networks have been offloading content moderation jobs to AI; this year Meta Platforms will be relying on a class of AI-powered engineers to carry out basic bug fixes and product improvements at Meta, chief executive officer Mark Zuckerberg has said. In an interview, Washington said that Salesforce is hiring fewer engineers due to productivity gains from AI. 'We view these as assistants, but they are going to allow us to have to hire less and hopefully make our existing folks more productive.' Salesforce reported a workforce of about 76,500 employees as at Jan 31. At the same time as it's slowing hiring in some roles, Salesforce is increasing the ranks of sales workers. The company now has 13,000 salespeople, a sum that is expected to expand 22 per cent this year from a year earlier, chief revenue officer Miguel Milano said on the call. Earlier this year, Salesforce planned to cut over 1,000 employees as it hired for AI-focused roles, particularly in sales. BLOOMBERG
Sydney Morning Herald
3 hours ago
- Business
- Sydney Morning Herald
ASX to edge up as Wall Street drifts; Nvidia shares up after results
Stocks drifted to a mixed close on Wall Street in what has been a rocky week so far because of worries coming out of the bond market about the US government's mounting debt. Trading remained choppy throughout most of the day following Wednesday's big slump for the S&P 500. That loss has put the benchmark index on track for its worst week in the last seven. The S&P 500 slipped 2.60 points, or less than 0.1 per cent, to close at 5,842.01. The Dow Jones fell 1.35 points, or less than 0.1 per cent, to 41,859.09. The Nasdaq composite rose 53.09 points, or 0.3 per cent to 18,925.73. The Australian sharemarket is set to inch up, with futures at 6.31am AEST pointing to a rise of 5 points, or 0.1 per cent, at the open. The ASX lost 0.1 per cent on Wednesday after the latest inflation figures came in higher than expected. Loading Technology stocks did most of the heavy lifting for the broader market. The majority of stocks within the S&P 500 lost ground, but gains for technology companies with outsized values offset those losses. Google's parent Alphabet jumped 1.4 per cent. Nvidia, the world's most valuable chipmaker, gave a solid revenue forecast for the current period as it released its results after the closing bell, even as a slowdown in China weighed on results. Sales will be about $US45 billion ($70 billion) in the fiscal second quarter, which runs through July, the company said on Wednesday. That included the loss of roughly $US8 billion in revenue from China because of export controls. The forecast was in line with analysts' estimates, according to data compiled by Bloomberg. The outlook shows that Nvidia is ramping up production of Blackwell, its latest semiconductor design. The chipmaker — the world's largest by revenue — dominates the market for AI accelerators, the components that help develop and run artificial intelligence models. And an ever-broader lineup of hardware and software is letting Nvidia sell more products to customers. Shares are 3.8 per cent higher in extended trading.
Yahoo
5 hours ago
- Business
- Yahoo
2 Beaten-Down Tech Stocks to Watch in June
The recent market turmoil has provided investors with an opportunity to seek out deals in the market. Alphabet and Super Micro Computer trade at sharp discounts. But is it time to buy? 10 stocks we like better than Alphabet › Even though the S&P 500 has recovered most of its losses in 2025, this has been a challenging year for some stocks as they grapple with regulatory challenges and economic uncertainty. Let's explore the pros and cons for Super Micro Computer (NASDAQ: SMCI) and Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Down 65% from an all-time high of $119 reached in early 2024, Super Micro Computer's stock crash predates Trump's trade war. Last year, the company was hit by a short-seller report accusing it of accounting irregularities. This crisis led to the resignation of Ernst & Young as its auditor and a delay in the submission of its required financial reports, putting the company's shares at risk of being delisted by the Nasdaq exchange. The good news is that these issues appear to be resolved. On Feb. 26, Super Micro Computer regained compliance with Nasdaq requirements after filing delayed reports for fiscal 2024 and 2025. This move follows the completion of an independent committee review, which recommended some improvements to its internal controls but found no evidence of managerial fraud or misconduct. Now that this uncertainty appears to be resolved, investors can focus on Super Micro Computer's exciting fundamentals. Super Micro turns graphics processing units (GPUs) made by partners like Nvidia and Advanced Micro Devices into user-ready computer servers. And so far, the AI hardware industry shows no signs of slowing down as companies push to stay competitive in this rapidly evolving industry. The continued rollout of Nvidia's popular Blackwell AI chips could help turbocharge demand for the remainder of 2025 and possibly beyond. That said, the company is not without challenges. Third quarter revenue of $4.6 billion came in short of analysts' expectation of $5.42 billion, but investors should look at this in the proper context. That figure still represents a year-over-year growth rate of around 19%, which isn't too shabby for a company valued at a forward price to earnings (P/E) multiple of just 14 compared to the S&P 500 average of 24. Like Super Micro Computer, Alphabet's decline is about more than the recent trade war-related uncertainty. Investors have become increasingly skeptical about the company's future due to the rising likelihood of antitrust regulation, which could lead to the breakup of certain aspects of its business. With that said, investors may be overreacting to the situation. Last year, a federal judge ruled that Google held an illegal monopoly in the search industry. In response, the Justice Department wants to force Google to divest its Chrome browser, arguing that the platform gives Google monopoly power over online search and advertising by allowing it to steer a massive amount of internet traffic to its search engine. While Google currently has no plans to sell Chrome, investors should consider the possibility that this or similar outcomes could be imposed on it. Another big threat could come from the rise of generative AI applications like OpenAI's ChatGPT which could take consumer attention away from traditional search engines. The good news is that Alphabet's valuation already prices in a worst-case scenario. With a forward price-to-earnings (P/E) multiple of just 18, shares trade at a discount to the Nasdaq-100 average of 27. And that's cheap for a company that grew its profits by 46% in the first quarter. More importantly, Alphabet's economic moat is arguably the strongest in the world. And while antitrust regulation could chip away at this advantage, it won't destroy it. The company's Google search engine is so ubiquitous and popular that people will likely still want to use it, even if a different company owns the Chrome browser. The challenges from AI look much more daunting. But Google's popularity could allow it to retain users by integrating AI results into its existing search businesses to keep customers from going elsewhere. 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 $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% 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 May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has positions in Super Micro Computer. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool has a disclosure policy. 2 Beaten-Down Tech Stocks to Watch in June was originally published by The Motley Fool Sign in to access your portfolio
