Coca-Cola's Earnings Highlight Potential for a Tech Stock Resurgence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy GOOG?
Source: Barron's
- Consumer Staples Performance: Consumer staples stocks have been performing well this month, surpassing technology stocks.
- Investor Sentiment: Renewed fears surrounding AI have prompted investors to seek safer investment options.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Outstanding Market Performance: Micron's stock has surged 231% over the past six months and over 73% in the last three months, showcasing its superior performance among tech stocks and attracting significant investor interest, thereby solidifying its market position.
- Memory Market Shift: As the memory market transitions from oversupply to tightening, prices have risen, and Micron's guidance suggests margins could significantly improve through 2026, reflecting strong expectations for high-bandwidth memory (HBM) demand, strategically positioning it favorably within the chip industry.
- Portfolio Adjustment: Renaissance trimmed its holdings in Nvidia and Alphabet during the same quarter, indicating a strategic shift in its AI investment approach, likely to concentrate resources on the more promising Micron, suggesting an optimistic outlook on future memory price increases.
See More
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- Surge in Capital Expenditures: Alphabet announced a capital expenditure plan of $175 billion to $185 billion for 2026, while Amazon plans to spend about $200 billion, highlighting fierce competition in AI, although this will pressure their cash flows.
- Uncertain Cash Flow Outlook: Amazon's free cash flow is expected to approach zero or turn negative by 2026, while Alphabet may maintain positive cash flow, despite tapping the debt market for $32 billion to fund its data center expansion.
- Growing Backlogs: Alphabet's backlog reached $240 billion, up 55% sequentially, while Amazon's backlog grew to $244 billion, a 22% increase, indicating strong market demand for AI products for both companies.
- Market Reaction: Despite the significant investment potential in cloud computing and AI, the market reacted negatively to both companies' spending plans, leading to stock price declines and presenting long-term investors with an opportunity to buy at a discount.
See More
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- AI Impact Assessment: As AI technology rapidly evolves, investors are questioning whether it will reduce the labor embedded in commercial real estate brokerage and advisory work, potentially leading to greater cost pressures and downward pricing risks for these firms.
- CBRE Earnings Highlights: CBRE Group reported a fourth-quarter adjusted EPS of $2.73, exceeding the market expectation of $2.67, although its revenue of approximately $11.63 billion fell slightly short of the anticipated $11.71 billion, demonstrating the company's resilience in profitability.
- Future Outlook: CBRE also issued FY2026 adjusted EPS guidance of $7.30 to $7.60, which was positively received by the market; however, the stock still dropped about 8%, reflecting investor uncertainty regarding the future market environment.
See More
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- Massive Capital Expenditures: Alphabet announced a capital expenditure plan of $175 billion to $185 billion for 2026, while Amazon plans to spend about $200 billion, which will significantly pressure their free cash flow, potentially bringing Amazon's close to zero or negative.
- Cash Flow Status: Alphabet generated $165 billion in operating cash flow in 2025 and is expected to maintain positive free cash flow despite increased spending, whereas Amazon's operating cash flow of $140 billion is not growing as fast, risking negative cash flow.
- Backlog Growth: Alphabet's backlog reached $240 billion, up 55% sequentially, indicating strong demand for AI products; Amazon's backlog also grew by 22% to $244 billion, reflecting robust market demand in the cloud computing sector for both companies.
- Market Reaction: Despite the significant investment potential in AI, the market reacted negatively to both companies' spending plans, leading to stock price declines, which may present buying opportunities for long-term investors considering their strong competitive positions in high-return areas.
See More
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- Significant Revenue Growth: YouTube generated over $60 billion in revenue in 2025, which is 33% higher than Netflix's $45 billion, showcasing its strong performance in the streaming market and dominance in ad revenue.
- Leading User Engagement: YouTube captured 12.7% of TV viewing time in the U.S., compared to Netflix's 9%, indicating YouTube's superior user retention and content diversity, further solidifying its market leadership.
- Enhanced Network Effect: As more users and content creators join, YouTube's platform value continues to rise, creating a powerful network effect that makes it more resilient in competition, attracting more advertisers and content creators.
- Technology-Driven Innovation: Alphabet's technological engine continuously optimizes YouTube's algorithms, enhancing user experience and content recommendation efficiency, ensuring the platform maintains its competitive edge in the future, particularly with the application of AI technologies.
See More
