BTIG: Google Tests Home Listings Search Challenging Zillow
BTIG noted that Google (GOOGL) is testing for-sale home listings in mobile search results across multiple markets, in what could be seen as a direct challenge to the portal models of Zillow Group (ZG) and CoStar Group's (CSGP) Homes.com. The firm added that Google is sourcing listings from a data platform/registered broker and monetizing via book-a-tour, find-an-agent and ask-a-question buttons that direct searchers to buyside agents that pay for the placement. This could be a problem for the residential portal sites given Google's reach and potential to feed listings into AI results, BTIG told investors in a research note. The firm reiterated a Neutral rating on Zillow Group. BTIG also maintained its Buy rating and $55 price target on CoStar Group.
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- Exit from Google Stock: Druckenmiller completely closed his position in Alphabet, worth over $120 million, in Q1 2026, despite the company's strong performance, as its valuation surged from a 15x P/E ratio in early 2025 to 27x, indicating potential pressure on future investment attractiveness.
- New Investment Positions: In the same quarter, Druckenmiller initiated new positions in agentic AI by purchasing over 411,000 shares of Intel and 106,700 shares of Arm Holdings, totaling approximately $34 million, reflecting his confidence in the future development of AI technology.
- Rising CPU Demand: With the emergence of agentic AI, demand for CPUs from Intel and Arm has significantly increased, as Intel's CEO noted that the CPU to GPU usage ratio in data centers improved from 1:8 to 1:4, showcasing strong market demand and future potential for CPUs.
- Arm's Market Expansion: Arm plans to ramp up its own CPU business to a $15 billion annual revenue stream over the next five years, demonstrating the company's proactive response to market demand while providing investors with new growth opportunities, despite current high stock prices.
- Antitrust Investigation Progress: The EU plans to impose a fine on Google amounting to a high triple-digit million euros as part of an antitrust investigation, which is expected to be the largest fine ever under the Digital Markets Act, indicating increased regulatory scrutiny on tech giants.
- Investigation Background: Officially launched in March 2025, the investigation focuses on whether Google favors its own services in search results, aiming to ensure compliance with local regulations and maintain fair competition in the market.
- Decision Timeline: According to Germany's Handelsblatt, the European Commission's decision is nearing completion and is expected to be officially announced before the summer break, a timeline that could influence Google's market strategy and investment decisions.
- Regulatory Response: Despite the European Commission granting Google additional time to address concerns, the company's previous proposal fell short, highlighting the challenges and pressures it faces in compliance, which may impact its operations in Europe.
- Strong Earnings Outlook: Snowflake anticipates Q1 fiscal 2027 earnings of 32 cents per share, reflecting a 33.33% year-over-year increase, with revenue expectations at $1.32 billion, indicating a 26.85% growth, showcasing robust performance in AI and client expansion.
- Significant Customer Growth: As of Q4 fiscal 2026, Snowflake's net revenue retention rate reached 125%, with 740 net new customers added, a 40% year-over-year increase, indicating enhanced competitiveness in the market, a trend expected to continue in the upcoming earnings report.
- Product Revenue Projections: The company expects product revenues to range between $1.262 billion and $1.267 billion for Q1, reflecting a 27% year-over-year growth, with the Zacks consensus estimate at $1.26 billion, highlighting strong market demand for its offerings.
- Increased Competitive Pressure: Despite Snowflake's expanding product portfolio, it faces intense competition from major cloud providers like Oracle, Amazon, and Alphabet, particularly in the rapidly evolving AI sector, which may pose threats to its market share.
- New AI Infrastructure Opportunity: Arm Holdings has launched the AGI CPU specifically designed for emerging agentic AI workloads, which is expected to significantly increase computing demands in data centers, creating a long-term growth opportunity for the company.
- Efficient Alternative: The AGI CPU is positioned as a high-efficiency alternative to conventional x86 systems, with Arm claiming significantly improved rack-level performance and better infrastructure economics, helping customers lower capital expenditures.
- Strong Customer Demand: Arm has reported that demand for the AGI CPU has already surpassed early launch expectations, driven by support from cloud operators, telecom infrastructure providers, and enterprise AI customers, highlighting Arm's importance in the AI hardware ecosystem.
- Industry Integration Trend: Companies like NVIDIA and Google are deepening their collaboration with Arm by integrating its architecture into next-generation AI systems, reflecting Arm's critical role in future cloud AI deployments.
- Return on Investment Comparison: Bill Ackman's Pershing Square Holdings has achieved an annualized return of 14.9% since its inception in 2004, significantly outperforming the S&P 500 during the same period, highlighting the effectiveness and market appeal of his investment strategy.
- Abel's Investment Positioning: Greg Abel of Berkshire Hathaway increased the company's stake in Alphabet last quarter, making it the fifth-largest holding, indicating confidence in the tech giant's future growth, while Ackman opted to sell his Alphabet shares at this time.
- Alphabet's Financial Performance: Alphabet's Google Cloud business saw a 63% revenue growth last quarter, with operating margins expanding to 33%, showcasing its strong performance and market demand in the AI sector, although its advertising business remains dominant.
- Microsoft's Investment Opportunity: Ackman redirected funds from selling Alphabet into Microsoft, viewing its current valuation as more attractive; Microsoft's cloud and software segments are also experiencing rapid growth, achieving revenue increases of 40% and 19%, respectively, demonstrating its competitive strength in the market.
- Investment Moves: Ackman has completely disposed of his Alphabet shares held since 2023, while Berkshire Hathaway has made it its fifth-largest marketable equity position, indicating strong confidence in the company.
- AI-Driven Growth: Alphabet is demonstrating robust AI momentum across multiple business segments, with Google Cloud revenue growth accelerating to 63% and operating margins expanding to 33%, showcasing its success in the AI value chain.
- Financial Performance: Despite Alphabet's projected spending of up to $190 billion this year, strong performance in its advertising and cloud computing segments has led the market to accept this expenditure level, pushing shares to trade at 27 times forward earnings expectations.
- Market Competition: Ackman redirected funds from selling Alphabet into Microsoft, believing its current valuation offers better opportunities, even as he acknowledges Alphabet's growth potential, reflecting differing market perspectives on both companies.










