Key Research Findings for Alphabet, IBM, and Merck
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 16 2025
0mins
Should l Buy GOOG?
Source: NASDAQ.COM
Zacks Research Daily Highlights: The report features research on 16 major stocks, including Alphabet, IBM, and Merck, along with micro-cap stocks SandRidge Energy and NeurAxis, emphasizing unique insights into smaller companies.
Alphabet's Performance: Alphabet's shares have outperformed the industry, driven by growth in Google Cloud and advancements in AI, despite ongoing litigation requiring data sharing with rivals.
IBM's Growth Strategy: IBM is focusing on its Watsonx platform and hybrid cloud solutions, but faces challenges from declining consulting sales and macroeconomic pressures.
Merck's Sales Dynamics: Merck's sales are bolstered by its Keytruda drug, despite facing competitive pressures and challenges in the Chinese market, while also pursuing M&A to enhance its pipeline.
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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: 303.940
Low
255.00
Averages
336.08
High
400.00
Current: 303.940
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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- Developer Availability: The new model is now accessible to developers via the Gemini API in platforms such as Google AI Studio, Gemini CLI, Google Antigravity, and Android Studio, enhancing developers' flexibility and creativity in AI applications.
- Enterprise and Consumer Access: Gemini 3.1 Pro is not only available to developers but also serves enterprise users through Vertex AI and Gemini Enterprise, while consumers can access it via the Gemini app and NotebookLM, broadening its market reach.
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- New ETF Launch: XMAG, launched on October 21, 2024, tracks the BITA US 500 ex Magnificent 7 Index, currently holding 493 stocks with net assets of $137.79 million, reflecting a rising demand for diversified investments in the market.
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- Core Reasoning Enhancement: Google has significantly improved core reasoning capabilities in its latest Gemini 3.1 Pro, achieving a verified score of 77.1% on the ARC-AGI-2 benchmark, which is more than double the performance of 3 Pro, indicating substantial progress in complex problem-solving.
- Developer Availability: The new model is now accessible to developers via the Gemini API in platforms such as Google AI Studio, Gemini CLI, Google Antigravity, and Android Studio, enhancing developers' flexibility and creativity in AI applications.
- Enterprise and Consumer Access: Gemini 3.1 Pro is not only available to developers but also serves enterprise users through Vertex AI and Gemini Enterprise, while consumers can access it via the Gemini app and NotebookLM, broadening its market reach.
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See More
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- Cloud Market Share: According to Synergy Research Group, Google's cloud business achieved a record 21% share of the global market in Q4 last year, indicating sustained growth in a competitive landscape that could enhance the company's overall profitability.
- Revenue Growth Comparison: Google's cloud segment saw a 48% year-over-year revenue increase, doubling its operating income to $5.3 billion, demonstrating its potential as a major profit driver in the rapidly expanding cloud market and reflecting strong performance in technology.
- Microsoft's Market Challenges: While Microsoft's cloud business continues to grow, its market share is declining, particularly in the AI sector, where only 15 million users have adopted Copilot, indicating a lack of market appeal that could impact future profitability.
- Advertising Revenue Performance: Despite economic turmoil and increased competition, Google's ad revenue grew over 13% year-over-year, showcasing the resilience of its core business and ongoing market demand, further solidifying its leadership position in the advertising market.
See More
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Gemini 3.1 Pro Release: Google has announced the availability of Gemini 3.1 Pro, which is set to start today.
Preview of Features: The new version will include features that enhance its capabilities, particularly in the context of AI and enterprise applications.
See More
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Introduction of Gemini 3.1: Google has launched Gemini 3.1, an advanced version of its AI model designed to enhance various applications and services.
Integration with Google Cloud: The new model is integrated into Google Cloud, providing businesses with improved AI capabilities for their operations.
See More
Significant Regime Shift in Wall Street Trends
- Market Performance Divergence: As of 2026, 493 stocks in the S&P 500 have outperformed the Roundhill Magnificent Seven ETF (NASDAQ:MAGS), indicating a potential weakening of concentrated investments in tech giants, which may impact investor confidence.
- New ETF Launch: XMAG, launched on October 21, 2024, tracks the BITA US 500 ex Magnificent 7 Index, currently holding 493 stocks with net assets of $137.79 million, reflecting a rising demand for diversified investments in the market.
- Valuation Rotation Thesis: Investor Ed Yardeni's
See More
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- Market Leader: Nvidia commands approximately 90% of the GPU market, benefiting significantly from AI infrastructure spending due to its cutting-edge chip designs and CUDA software platform, which are expected to drive long-term growth for the company.
- Cost Advantage: Alphabet gains a structural cost advantage by designing its own TPU chips, allowing it to train and run AI models more cheaply than competitors, while also starting to lease TPUs at scale, creating a new revenue stream.
- Industry Monopoly: Taiwan Semiconductor Manufacturing, as the leading chip manufacturer globally, has established a de facto monopoly in advanced chip production due to its unmatched technological expertise and scale, and is expected to maintain strong pricing power moving forward.
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