Latest news with #EddyCue
Yahoo
11 hours ago
- Business
- Yahoo
Evercore Unfazed: $205 Target Reaffirmed Despite GOOG Underperformance
Evercore ISI recently reiterated an Outperform rating and $205 price target on Alphabet Inc. (NASDAQ:GOOG) shares. Alphabet is a technology company that owns and runs the internet search engine Google. In an investor note, the analyst noted that Alphabet shares had traded down following reports that Apple Senior VP of Services Eddy Cue testified that Search volumes in Apple's Safari browser fell for the first time in April and that Apple was actively exploring adding AI Search capabilities to its browser, potentially adding partners like Perplexity and Anthropic. The selloff put shares of Google's parent down a total of 26% since an early February peak, noted the analyst, who will take the other side and be buyers of this correction. Later in the day, Google issued a statement saying: We continue to see overall query growth in Search. That includes an increase in total queries coming from Apple's devices and platforms, notes Evercore. It is plausible that Cue's statement reflects both a very mature low-single digit percentage Search query growth rate and Apple Safari browser share losses, as tracked by statcounter, added the analyst. A laptop and phone open to Google's services in an everyday setting. While we acknowledge the potential of GOOG, 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: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None.
Yahoo
11 hours ago
- Business
- Yahoo
Evercore Unfazed: $205 Target Reaffirmed Despite GOOG Underperformance
Evercore ISI recently reiterated an Outperform rating and $205 price target on Alphabet Inc. (NASDAQ:GOOG) shares. Alphabet is a technology company that owns and runs the internet search engine Google. In an investor note, the analyst noted that Alphabet shares had traded down following reports that Apple Senior VP of Services Eddy Cue testified that Search volumes in Apple's Safari browser fell for the first time in April and that Apple was actively exploring adding AI Search capabilities to its browser, potentially adding partners like Perplexity and Anthropic. The selloff put shares of Google's parent down a total of 26% since an early February peak, noted the analyst, who will take the other side and be buyers of this correction. Later in the day, Google issued a statement saying: We continue to see overall query growth in Search. That includes an increase in total queries coming from Apple's devices and platforms, notes Evercore. It is plausible that Cue's statement reflects both a very mature low-single digit percentage Search query growth rate and Apple Safari browser share losses, as tracked by statcounter, added the analyst. A laptop and phone open to Google's services in an everyday setting. While we acknowledge the potential of GOOG, 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: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires 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
3 days ago
- Business
- Yahoo
Is Alphabet Stock Too Cheap to Ignore?
Alphabet is facing three primary challenges to its current business. It has still put up strong growth despite these headwinds. The stock is historically cheap. 10 stocks we like better than Alphabet › Sometimes, stocks fall to valuations where you can't pass them up. Most of the time, this occurs because of an overwhelming negative sentiment in the market, which tends to swing the pendulum too far in one direction. Warren Buffett once said, "Be fearful when others are greedy and be greedy only when others are fearful." There is a lot of fear surrounding Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock right now, which has caused it to get beaten down. But is it at a point where investors should be buying shares hand over fist? Alphabet has multiple brands under its umbrella, but the most notable is Google. Google's business model is under attack from all directions, and this has caused the stock to sell off heavily. Alphabet generates 56% of its revenue from Google Search, making it a vital part of its business model. Although the company doesn't break it out individually, investors can easily assume that a large chunk of Alphabet's profits also comes from this business. One of investors' first issues with Google Search is how it will fare with AI. One of the most high-profile examples of this fear was when Apple's (NASDAQ: AAPL) Chief of Services Eddy Cue stated that he believes AI will replace search one day. This would be a huge problem, but Alphabet is already one step ahead of the curve. Google has already implemented AI search overviews, which bridge the gap between older search technology and new generative AI models. Alphabet has already stated that this feature is incredibly popular and may be enough to save its business. But it's not stopping there. Google has also developed an AI mode for its search engine, so it's already positioned itself for the new age of AI. Another fear is that an economic downturn will hurt Alphabet. While this is historically true, advertising is a cyclical business, and revenue eventually returns. So, I'm not worried about a short-term economic headwind, because that has always been a risk with Alphabet stock. Lastly, investors are worried about a potential government breakup. Alphabet has been found guilty of operating two illegal monopolies (one in search, one in advertising). It's still battling through courts about what the remedy will be (or if it'll still be found guilty if an appeal lands it in front of a higher court).This is a difficult challenge to assess, as multiple outcomes are possible. Typically, spinoffs tend to unlock value for the parent company and newly formed entity, so I'll cling to this fact if Alphabet is forced to sell a part of its business. Those three worries have tanked Alphabet's stock, but I think all three challenges can be navigated. As a result, I'm not nearly as bearish on Alphabet's stock as the rest of the market is. While the market has recovered from its tariff-induced lows, Alphabet's stock is still trading at a historically cheap valuation. At 19 times trailing earnings, it's also much cheaper than the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC). The S&P 500 trades around 24 times trailing earnings, so the valuations are clearly mismatched. I think Alphabet's stock has a ton of value, and the ensuing 2025 quarterly results will confirm that thesis. Alphabet isn't dead yet; it still has plenty of growth left for investors to capitalize on. As a result, I think the stock is too cheap to ignore here, and investors should take this opportunity to load up on shares. 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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. Keithen Drury has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy. Is Alphabet Stock Too Cheap to Ignore? was originally published by The Motley Fool Sign in to access your portfolio
Forbes
5 days ago
- Business
- Forbes
$3,500 American Made IPhone May Slash Apple Sales By $153 Billion
Apple's iPhone is 18 years old but despite the emergence of competition – most notably from Samsung – hundreds of millions of people still buy them. Yet Apple's innovative spirit has long departed, as I wrote in my April 2013 Forbes post. To be fair, Apple has made incremental improvements to the iPhone since it was launched in 2007 adding services – such as Apple TV, Apple Pay, and others that raise the cost for customers to switch to other smartphone vendors. Even Apple sees a threat to the iPhone. 'You may not need an iPhone 10 years from now, as crazy as that sounds,' Apple executive Eddy Cue testified in a May court case, reported the Wall Street Journal. That threat could intensify because some consumers will not be willing to pay more than three times the current price for an iPhone. That is what could happen if President Donald Trump's threatened 25% tariff drives Apple to shift iPhone production to the U.S.. Indeed, Trump's dream of a 'Made in America' iPhone would be nightmare for Apple. How so? Building factories in the U.S. would require massive investments – $30 billion over three years to make a mere 10% of Apple's iPhones in America, estimated Wedbush analyst Dan Ives, according to CNBC – resulting in much higher costs. By passing along those higher costs to consumers, the iPhone price tag could more than triple to $3,500, CBS News estimated. While there is a range of scenarios, such a high price could cost Apple as much as $153 billion in revenue – assuming 70% of Apple's customers switch to a $1,200 Samsung smartphone. That would represent a 39% drop in Apple's 2024 total revenue of $391 billion which rose a mere 2% in 2024, according to Macrotrends. I have requested comment from Apple and will update this post if I receive a response. Apple has long been manufacturing most iPhones in China and has more recently shifted some production to India to avoid tariffs imposed by the Indian government which are aimed at encouraging more local manufacturing, according to Apple in China and India, a business school case I co-authored Before Trump's tariffs, the iPhone 16 Pro was priced about twice what it costs Apple to make it. For example, the 256GB version's price is $1,100 – roughly 86% more than the $580 Apple spent for all the hardware, the assembly and the testing, reported the Wall Street Journal. With Trump's threatened 25% tariff, Apple's all-in costs would rise to $725, Preserving Apple's 86% markup would boost the price of the iPhone 16 Pro to $1,350 by my calculation. Apple's costs to make iPhones in India – where about 19% of the company's iPhones were made last year, according to Moneycontrol – are slightly higher. Due to higher supplier margins in India (8% versus 6% in China), the all-in cost to Apple of an iPhone made in India is $591, according to a JPMorgan reported featured by Moneycontrol. Paying the 25% tariff on the iPhones imported from India would raise Apple's costs to $739 and preserving Apple's 86% markup would result in a price to the consumer of $1,374, I calculated. There is no clear agreement on how much the cost to make an iPhone would increase were all the company's production to shift to the U.S.. However, experts seem to agree there are serious challenges to doing so – including the lack of sufficient workers with the needed skills, the higher pay those workers would demand, and the ultimate costs – factoring in ever-shifting tariffs – to import parts to the U.S. for final assembly, reported CNBC. China has significant smartphone labor advantages over the U.S.. 'Young Chinese women have small fingers, and that has made them a valuable contributor to iPhone production because they are more nimble at installing screws and other miniature parts in the small device,' supply chain experts told the New York Times. China also has much more engineering talent. In 2017, China 'had enough tooling engineers to fill multiple football fields, while the United States barely had enough to fill a room,' Apple CEO Tim Cook said, according to a Times report. One analyst estimated the cost to assemble and test an iPhone in the U.S. would be five times higher than it would be in China. With a signing bonus of about $1,000, a Chinese worker gets pay $3.63 per hour – a fraction of California $16.50 minimum wage, noted CNBC. One reason for the lower pay is that Apple suppliers do not pay them for a full year of work. Millions of Chinese workers migrate to the factories – working from summer until Chinese New Year and living in dormitories near football field size factories, noted the Times. So it comes as little surprise to read one analyst's estimate of a $200 per iPhone cost to test and assemble an iPhone in the U.S. – a whopping five times more than the $40 per iPhone in China, according to Bank of America Securities analyst report from Wamsi Mohan featured by CNBC. Apple will likely not shift its smartphone production to the U.S. due to the much higher domestic manufacturing costs and the investment required to revamp the company's supply chain – resulting in a tripling of the higher-end iPhone price to as much as $3,500. "We believe the concept of Apple producing iPhones in the U.S. is a fairy tale that is not feasible," Ives told CBS News. Ives thinks Apple is unlikely to shift its smartphone production to the U.S., noting the much higher domestic manufacturing costs and that revamping its supply chains to make that possible would take years. Producing iPhones in the U.S. would lift the cost for higher-end models to as much as $3,500 each. Some iPhone customers are likely to switch smartphone vendors when their current devices stop working. The unknown is how many of them would switch to a lower priced device from a rival such as Samsung. Under a worst case scenario in which a more than 150% price increase drives 70% of iPhone buyers to a lower-priced rival, according to Apple Insider, Apple could lose approximately $152.95 billion in revenue from the customers who switch. This is calculated based on 2024 sales of 232 million iPhones at an average price of $1,018, totaling $236.2 billion. If 70% (162.4 million) switch, the lost revenue from these customers is 162.4 million × $1,018 = $165.3 billion. Under a best case scenario – in which a mere 10% to 20% of consumers switch to an iPhone rival because of high customer loyalty to luxury goods, per a PhoneArena analysis of iPhone brand loyalty – Apple's iPhone revenue loss from tripling its price would range between $23.6 billion and $47.2 billion, I estimate. With Apple's stock price down 20% in 2025, the company's tariff troubles are bad news for investors – as are Apple's innovation ongoing deficits, notes PhoneArena.
Yahoo
22-05-2025
- Business
- Yahoo
Google搜尋大升級！AI模式追貼ChatGPT？
Google在星期二的I/O大會上首次展示超越其傳統的搜尋產品，並推出了一系列新技術。這些技術未必會取代會給你10個鏈結的主流的搜尋世界，但到未來，這些鏈結在生活上會變得沒有那麼必要，Google正為這毎未來的來臨鋪平了道路。 下載Yahoo財經APP 美股外幣即時報價 多國新聞任睇 從內建類似ChatGPT式的人工智能模式（AI Mode）、幫你買東西的AI代理，到重新研發下一代智能眼鏡，Google顯示其如何在AI初創公司和政府反壟斷執法機構雙重威脅下，致力將服務提升到更高層次。 Alphabet（GOOGL）最重要的子公司Google的廣告帝國建立在搜尋平台基礎上，這仍是其最重要業務。但OpenAI（ Google迎擊新對手的的必要，在一場反壟斷聽證會上顯露無遺。蘋果（AAPL）服務業務高級副總裁Eddy Cue透露，通過其Safari瀏覽器的搜尋量在4月倒退，是歷史首次下降。Google是Safari的預設搜尋引擎，這是兩公司每年200億美元協議的一部分，而美國司法部正通過反壟斷官司謀求終止此協議。 Cue將倒退是因為客戶選擇使用ChatGPT等生成式AI服務，但Google反駁，稱其搜尋總體查詢量持續增長。 該報告震撼了華爾街，5月7日消息傳出時，Google股價一度下跌高達7.5%。 自2022年底OpenAI及其合作夥伴微軟（MSFT）對Google搜尋霸主地位開始構成威脅以來，Google一直處於守勢。現在，Google正全力以赴，向客戶和華爾街證明其有能力繼續在搜尋領域中稱霸。 Google搜尋平台最大改變之一是新增「AI模式」（AI Mode）。用戶可以與Google AI進行來回對話，類似於與ChatGPT、Bing或Perplexity的互動。如此公司便毋須放棄傳統搜尋產品，因為AI Mode並非取代搜尋，而是在搜尋中作為一個標籤，類似於圖片、新聞和視頻。此功能會先在美國開放。 AI Mode使用Google的最先進的模型，並利用公司稱為「分散查詢」（query fan-out）的技術。Google表示，此方法將查詢分解為較小的子問題，同時運行多個獨立搜尋。Google解釋，這使AI Mode能執行比傳統搜尋更深入的搜尋。 Google搜尋的「AI概覽」（AI Overviews）也將升級，部分搜尋結果將從AI Mode的最新AI模型中提取信息，作為兩種搜尋選項之間的選擇。 Google表示，還將為AI Mode引入AI代理功能，可以讓軟件執行任務，如儲起客戶想要的產品並完成結帳流程。 AI Mode還新增「試衫」功能，用戶可以上傳自己的圖像，然後看看衣服穿在身上的效果。僅從這些公布可見，Google對AI Mode寄予厚望，有機會成為傳統搜尋產品的接班人。 Google不僅專注於對抗新興AI公司，還致力於應對智能眼鏡的新威脅。Google最大的廣告競爭對手Meta已推出Ray-Ban Meta智能眼鏡，希望這款眼鏡引領消費科技革命。 Meta正在開發其Meta AI為用戶執行搜尋功能，若智能眼鏡持續改進，足以令消費者放棄智能手機，或至少透過眼鏡進行搜尋而減少使用手提電話，則Google可能面臨嚴重危機。 為此，Google重新投入研發，宣布與三星、高通（QCOM）、Warby Parker（WRBY）和Gentle Monster合作，開發自家的智能眼鏡。 智能眼鏡未必能像智能電話多年來那樣成為全球消費者的首選科技。但隨著搜尋業務面臨的威脅增加，Google不能錯過這一機會。 翻譯自Yahoo財經
