Latest news with #AlphabetInc
Bloomberg
12 hours ago
- Business
- Bloomberg
Huawei's Pura X Is An Intriguing New Foldable — If You're Outside the US
In most of the world, the smartphone market is dominated by two players: Alphabet Inc. 's Android and Apple Inc. 's iOS. But China's Huawei Technologies Co. is looking to challenge that long-held reality with its in-house mobile platform, HarmonyOS. Since launching late last year, the software has already become the most credible contender to that duopoly in China. The company has even unveiled a companion laptop-grade operating system to replace Windows. Huawei's new phone embodies Beijing's efforts to reduce its reliance on the US tech industry. But its efforts to establish independence in the software realm won't mean much without cutting-edge devices that can serve as vehicles to showcase its new platform. The recently launched Pura X foldable isn't just a hardware novelty; it's also the company's first flagship smartphone to run HarmonyOS out of the box, making it an early test of how willing users will be to jump ship for a largely untested — and still incomplete — ecosystem.
Yahoo
2 days ago
- Business
- Yahoo
Palantir vs. Alphabet Stock: Wall Street Says Buy One and Sell the Other
Both Palantir and Alphabet stock have shown strong price appreciation since the 2022 bear market. Both companies benefit from growing spending on AI as its use cases expand. Palantir and Alphabet's valuations have moved in opposite directions. 10 stocks we like better than Palantir Technologies › Artificial intelligence (AI) has been the driving force behind the stock market's gains since the bottom of the recent bear market in October 2022. Breakthroughs in generative AI's capabilities created a lot of excitement about the potential of new uses for AI within businesses. Palantir Technologies (NASDAQ: PLTR) found immense value in using AI within its data mining software and has rapidly grown the number of customers using it. That resulted in strong operating results and a soaring stock price. Meanwhile, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) benefited from increased investment in AI development through its Google Cloud platform while strategically integrating generative AI into its core search product. Investors rewarded the stock, nearly doubling its value since the start of 2023. But past performance isn't an indicator of future results, as the saying goes. And Wall Street analysts only expect one of these stocks to keep climbing higher over the next 12 months. Palantir has a median price target of $100, based on the views of 28 analysts who follow the company. That suggests a 20% downside over the next 12 months. Just six of those analysts have given the stock an overweight or buy rating. Alphabet has a median price target of $200, based on the views of 71 analysts following it. That suggests 16% upside over the next 12 months. Of those analysts, 60 rate the stock as overweight or buy. Here's what investors need to know. Palantir's introduction of its Artificial Intelligence Platform (AIP) helped supercharge its growth, especially among U.S. corporations. AIP makes Palantir's software more accessible to non-technical users, expanding its use cases within an enterprise. As a result, Palantir's U.S. commercial revenue rose by 54% in 2024. It topped 70% year-over-year growth in 2025's first quarter. As a software company, Palantir exhibits extremely strong operating leverage. With its rapid revenue growth, fueled by U.S. corporations, its adjusted operating margin expanded to 44% in Q1 2025. That was up from 24% in the first quarter of 2023. Its growth isn't expected to slow down anytime soon. Management increased its guidance for 2025 alongside its first-quarter earnings release. It now expects revenue growth of 36%, and to maintain that 44% operating margin for the full year. But here's the problem for Palantir stock: Its valuation of more than 75 times management's expected sales is extremely high. On an enterprise-value-to-EBITDA basis, the stock trades at more than 160 times forward estimates. No other enterprise software company has a valuation that's even close to that multiple. Taking a long-term outlook for the business suggests the stock could produce lower-than-average returns for investors even if it continues to produce extremely strong financial results. Wall Street seems to be thinking the stock will face a reset at some point in the near future. Such a dip could provide a buying opportunity for investors. But right now, Palantir stock is too expensive to recommend buying. Alphabet stock has come under pressure over the last few months as the company faces regulatory challenges and a court ruling that it has been acting as an illegal monopoly in the search engine technology space. As a result, it may be required to divest itself of certain assets, including its Chrome browser. Compounding that pressure is a report from Apple's Eddy Cue in early May that searches in its Safari browser are down due to increased use of AI chatbots like ChatGPT. Alphabet pays Apple roughly $20 billion a year for the right to be the default search engine in Safari (a practice the Department of Justice and the judge in the antitrust case took issue with), and it has derived a lot of value from its position in the Apple ecosystem. But Alphabet's financial results show another story. Google Search revenue increased 10% year over year in the first quarter. That growth was fueled by Google's integration of new AI features into its core search product. Most notably, AI Overviews, which offer AI-generated answers to search queries alongside links to their sources. Management said the feature increases engagement and user satisfaction, and it's now monetizing search results with AI Overviews at the same rate as those without it. That has led to higher overall revenue. Other AI features include Google Lens and Circle to Search, which help produce more high-value product searches. But Alphabet is more than just a search engine. It also owns YouTube, which grew its revenue by 10% in the first quarter. Its Waymo business is seeing strong momentum as it expands its autonomous vehicle ride-hailing service to new cities. It now completes over 250,000 rides per week. Perhaps the biggest growth driver for Alphabet is its Google Cloud business. It has been a big beneficiary of the growing spending on developing AI, and Alphabet has been working to expand its data center capacity as quickly as possible. Its 28% year-over-year revenue growth in the first quarter belies the true increase in demand for its compute services. That's evident from its operating margin expansion of 8.4 percentage points to 17.8%. Based on how Alphabet's larger competitors in the cloud infrastructure space are faring, Google Cloud could enjoy a lot more operating leverage as it scales up further. All of the uncertainty surrounding Alphabet's future, though, has pushed its valuation down to just 18.2 times forward earnings estimates. That's a great price for a company with a massive cash-flow-generating business like Google Search, a fast-growing cloud computing business, and a massive lead in the burgeoning autonomous vehicle space. It's no wonder Wall Street analysts expect the stock to climb, despite the regulatory challenges the company is facing. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — 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. Adam Levy has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Palantir Technologies. The Motley Fool has a disclosure policy. Palantir vs. Alphabet Stock: Wall Street Says Buy One and Sell the Other was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Germany Considers 10% Digital Tax On Tech Giants Alphabet, Meta: Report
In a move that could escalate trade tensions with the U.S., Germany is reportedly contemplating imposing a 10% tax on major online platforms, including Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Meta Platforms Inc. (NASDAQ:META). What Happened: Wolfram Weimer, the new German Minister of State for Culture, disclosed this proposal in an interview with Stern magazine. This revelation comes before Chancellor Friedrich Merz's anticipated visit to Washington, although no official confirmation has been provided yet, reported Reuters. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — President Donald Trump has previously expressed his disapproval of foreign governments taxing American companies, pledging not to let them 'appropriate America's tax base for their own benefit.' Weimer accused big online platforms like Alphabet Inc. and Meta Platforms Inc. of 'cunning tax evasion.' He suggested that these companies, which generate billions in profits in Germany, contribute minimally to the country's tax base and society. Weimer also criticized the monopolistic tendencies of these digital platforms, arguing that they pose a threat to freedom of It Matters: This proposal comes amid growing international scrutiny of tech giants. The Trump administration has been critical of Europe's digital regulations, asserting that they pose a risk to free speech and American commercial interests. Furthermore, in April, European Commission President Ursula von der Leyen warned that the EU is preparing retaliatory measures that could include levies on digital advertising revenues from U.S. tech companies like Meta and Alphabet Inc. This was followed by Meta CEO Mark Zuckerberg urging President Trump to respond aggressively to these threats. If the German government proceeds with this tax, it would join Britain, Italy, France, Spain, Turkey, India, Austria, and Canada, which have imposed similar taxes on digital service providers. The shares of Alphabet fell 0.24% to close at $172.96 on Thursday, meanwhile Meta rose 0.23% to $645.05. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Photo courtesy: JHVEPhoto / Send To MSN: Send to MSN Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Germany Considers 10% Digital Tax On Tech Giants Alphabet, Meta: Report originally appeared 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
Bloomberg
4 days ago
- Business
- Bloomberg
Google Search Judge Zeroes In on AI Power in Trial Resolution
The federal judge who will decide how to limit Google's monopoly in search is looking closely at its power in a more nascent market: artificial intelligence. On Friday in US District Court in Washington, Alphabet Inc. 's Google and the Justice Department began answering Judge Amit Mehta's final questions in the government's monopoly case against the search giant. It will be up to Mehta to decide whether to break up the company and reshape the internet or impose more limited penalties.
Yahoo
5 days ago
- Business
- Yahoo
Well-Known Investor Buys More GOOG Stock
Investor Jim Lebenthal, who frequently appears on CNBC, recently reported on the network that he had added to his holdings of Alphabet Inc. (NASDAQ:GOOG). The investor said that he expects Alphabet Inc. (NASDAQ:GOOG) "to meet the competitive threat" that it's facing from AI models. Lebenthal is Chief Equity Strategist of Cerity Partners and a partner in the firm. Alphabet Inc. (NASDAQ:GOOG) has "the intellectual chops" to compete effectively with the AI models, the investor stated. Noting that the shares are changing hands at a low forward price-earnings ratio of about 17 times, he added that the company had displayed its "capabilities" at its recent developers' conference. "I could be wrong, but I'm not sure how much" GOOG stock could drop, Lebenthal added, suggesting that the shares are unlikely to fall much below their current levels. In the last month, the shares have advanced 7%, while they have retreated 4% in the last three months. While we acknowledge the potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
