Nasdaq Rebounds to New Record High
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Nasdaq Rebound: The Nasdaq Composite entered correction territory on March 26 but quickly rebounded to a new high, with historical data indicating a median return of 25% in the 12 months following its first correction close since 2010, instilling confidence among investors.
- Alphabet AI Revenue Growth: Alphabet has achieved significant revenue growth through its digital advertising, cloud services, and autonomous driving sectors, with its cloud business accelerating to a 48% revenue growth in Q4, outpacing Amazon and Microsoft, reflecting strong market demand driven by AI products.
- Robinhood Attracts Young Investors: Robinhood's zero-commission trading and mobile-first platform are appealing to younger investors, with trading volume expected to increase significantly as millennials and Gen Z accumulate wealth, especially following the easing of margin requirements for day traders.
- Future Growth Expectations: Wall Street anticipates Robinhood's earnings will grow at an annual rate of 19% through 2027, and despite a current P/E ratio of 42, analysts' optimistic outlook has set a median target price of $100 per share, implying a 16% upside potential.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 336.020
Low
305.00
Averages
374.25
High
400.00
Current: 336.020
Low
305.00
Averages
374.25
High
400.00
About GOOGL
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.
Amazon vs Nvidia: Competitive Landscape in AI Chips
- Custom Chip Advantage: Amazon's recent shareholder letter reveals that its custom Graviton chips outperform Intel's by 40% in price performance, allowing Amazon to rapidly gain market share in cloud computing, with expectations for a similar trend in the AI market.
- Trainium Chip Performance: Amazon's Trainium2 chip offers 30% better price performance than GPUs and is nearly sold out, while the next-generation Trainium3 is in development, showcasing Amazon's strong competitive position in the AI training market.
- Collaboration with Nvidia: Despite Amazon's competitive edge in chip performance, it must maintain a strong relationship with Nvidia to ensure resource availability and prevent client losses to competitors, highlighting the importance of collaboration in the tech landscape.
- Sustained Market Demand: While Amazon's custom chips excel, Nvidia's growth rates are accelerating, with projected year-over-year growth rates of 79% and 85% for Q1 and Q2, respectively, indicating robust demand for AI computing power and a potential landscape with multiple winners in the chip market.
See More
Investment Opportunities Amid Tech Stock Pullback
- Tech Stock Recovery: During the 'Great Rotation', defensive sectors like consumer staples have outperformed tech stocks, leading to declines in top tech shares; however, history suggests that such periods are prime for acquiring quality growth stocks, as evidenced by the iShares S&P 500 Growth ETF nearly doubling the returns of the iShares S&P 500 Value ETF over the past decade.
- Nvidia's Growth Potential: Nvidia estimates that cumulative orders for its Blackwell and upcoming Rubin chips will exceed $1 trillion by 2026, with analysts projecting a 71% revenue increase this year to $369 billion, underscoring its critical role and profitability in the global economy.
- Microsoft's Cloud Revenue Growth: Despite a 30% drop from recent highs, Microsoft’s cloud revenue grew 26% year-over-year, with Microsoft 365 Copilot reaching 15 million paid users, indicating strong demand for its AI services and a solid foundation for future growth.
- Google's Advertising and Cloud Services: Google is achieving double-digit growth in advertising and cloud services by integrating its Gemini model, generating $73 billion in free cash flow over the past year, which enhances its appeal as a high-quality growth stock.
See More
Tech Giants Drive Long-Term Wealth Growth
- AI Investment Cycle: Nvidia estimates cumulative orders for its Blackwell and Rubin chips will exceed $1 trillion, with analysts projecting a 71% revenue increase in 2023 to $369 billion, highlighting its central role in the global economy and future profitability potential.
- Strong Cloud Growth: Microsoft's cloud revenue grew 26% year-over-year, with Microsoft 365 Copilot reaching 15 million users, indicating strong demand for AI services and expected further market share and revenue growth.
- Dual Growth in Ads and Cloud: Alphabet is driving double-digit growth in advertising and Google Cloud by integrating AI into its products, achieving $73 billion in free cash flow over the past year, showcasing its appeal as a high-quality growth stock.
- Massive Capital Expenditure Plans: Leading tech companies plan to spend at least $600 billion in 2023, with Google increasing capital expenditures to about $180 billion, viewed as a competitive advantage that can attract more users and enhance product quality.
See More
Apple's Unique Advantage in AI Investment
- Capital Expenditure Comparison: Apple's capital expenditures for fiscal 2025 were only $12.7 billion, starkly contrasting with Amazon's planned $200 billion for 2026, highlighting Apple's conservative approach to AI infrastructure investment, which may mitigate future financial risks.
- Core Business Advantages: Apple's business model relies on a powerful brand and the integration of hardware, software, and services, as consumers purchase Apple products not just for computing power but to engage in a seamless ecosystem, thereby enhancing customer loyalty.
- Financial Health Status: In the first quarter of fiscal 2026, Apple reported revenue of $143.8 billion, a 16% year-over-year increase, with earnings per share rising 19% to $2.84, showcasing strong performance in its high-margin services segment and reinforcing its market position.
- Future Outlook and Risks: While the iPhone accounts for over half of the company's total revenue, losing consumer interest could impact the business; however, Apple's ability to leverage AI without massive capital expenditures demonstrates its competitive edge in the AI era.
See More
Analysis of Alphabet's Future Growth Potential
- Core Business Stability: Alphabet's search segment achieved double-digit growth in 2025, with similar expectations for 2026, despite a slight decline in network revenue; this stable structure supports future investments and growth initiatives.
- Hidden Value of YouTube: YouTube generated over $40 billion in ad revenue last year, with total revenue exceeding $60 billion when including subscriptions, establishing itself as the largest streaming service globally and highlighting its critical role in the modern media landscape.
- Rapid Growth of Google Cloud: Google Cloud experienced a 48% revenue increase in the latest quarter, reaching $17.7 billion, with an operating margin nearing 30%, showcasing its potential as a growth engine for Alphabet, particularly amid rising demand for AI infrastructure.
- Investment Opportunities in Other Bets: Alphabet's ventures like Verily Health and Waymo are rapidly evolving, with Verily focusing on AI-driven precision health and Waymo expanding in autonomous driving, indicating significant market potential that could yield long-term benefits for the company.
See More
Apple's Earnings Report Shows Strong Growth
- Strong Financial Performance: Apple's first fiscal quarter revenue reached $143.8 billion, a 16% year-over-year increase, while earnings per share surged 19% to $2.84, demonstrating robust sales momentum during the holiday season and solidifying its market position.
- Capital Expenditure Comparison: In stark contrast to Amazon's planned $200 billion spending in 2026, Apple's capital expenditures were only $12.7 billion in 2025, highlighting its capital-light operational model that allows for flexibility in the AI infrastructure race.
- Record Services Revenue: The company's high-margin services segment achieved an all-time high this quarter, indicating effective monetization of its vast installed base of over 2.5 billion active devices, driving sustained revenue growth.
- Brand and Ecosystem Advantage: Apple's strong brand and seamless integration of hardware, software, and services set it apart in the competitive landscape; despite risks such as declining iPhone sales, the sticky customer experience provided by its ecosystem remains crucial for long-term success.
See More
Amazon vs Nvidia: Competitive Landscape in AI Chips
- Custom Chip Advantage: Amazon's recent shareholder letter reveals that its custom Graviton chips outperform Intel's by 40% in price performance, allowing Amazon to rapidly gain market share in cloud computing, with expectations for a similar trend in the AI market.
- Trainium Chip Performance: Amazon's Trainium2 chip offers 30% better price performance than GPUs and is nearly sold out, while the next-generation Trainium3 is in development, showcasing Amazon's strong competitive position in the AI training market.
- Collaboration with Nvidia: Despite Amazon's competitive edge in chip performance, it must maintain a strong relationship with Nvidia to ensure resource availability and prevent client losses to competitors, highlighting the importance of collaboration in the tech landscape.
- Sustained Market Demand: While Amazon's custom chips excel, Nvidia's growth rates are accelerating, with projected year-over-year growth rates of 79% and 85% for Q1 and Q2, respectively, indicating robust demand for AI computing power and a potential landscape with multiple winners in the chip market.
See More
Investment Opportunities Amid Tech Stock Pullback
- Tech Stock Recovery: During the 'Great Rotation', defensive sectors like consumer staples have outperformed tech stocks, leading to declines in top tech shares; however, history suggests that such periods are prime for acquiring quality growth stocks, as evidenced by the iShares S&P 500 Growth ETF nearly doubling the returns of the iShares S&P 500 Value ETF over the past decade.
- Nvidia's Growth Potential: Nvidia estimates that cumulative orders for its Blackwell and upcoming Rubin chips will exceed $1 trillion by 2026, with analysts projecting a 71% revenue increase this year to $369 billion, underscoring its critical role and profitability in the global economy.
- Microsoft's Cloud Revenue Growth: Despite a 30% drop from recent highs, Microsoft’s cloud revenue grew 26% year-over-year, with Microsoft 365 Copilot reaching 15 million paid users, indicating strong demand for its AI services and a solid foundation for future growth.
- Google's Advertising and Cloud Services: Google is achieving double-digit growth in advertising and cloud services by integrating its Gemini model, generating $73 billion in free cash flow over the past year, which enhances its appeal as a high-quality growth stock.
See More
Tech Giants Drive Long-Term Wealth Growth
- AI Investment Cycle: Nvidia estimates cumulative orders for its Blackwell and Rubin chips will exceed $1 trillion, with analysts projecting a 71% revenue increase in 2023 to $369 billion, highlighting its central role in the global economy and future profitability potential.
- Strong Cloud Growth: Microsoft's cloud revenue grew 26% year-over-year, with Microsoft 365 Copilot reaching 15 million users, indicating strong demand for AI services and expected further market share and revenue growth.
- Dual Growth in Ads and Cloud: Alphabet is driving double-digit growth in advertising and Google Cloud by integrating AI into its products, achieving $73 billion in free cash flow over the past year, showcasing its appeal as a high-quality growth stock.
- Massive Capital Expenditure Plans: Leading tech companies plan to spend at least $600 billion in 2023, with Google increasing capital expenditures to about $180 billion, viewed as a competitive advantage that can attract more users and enhance product quality.
See More
Apple's Unique Advantage in AI Investment
- Capital Expenditure Comparison: Apple's capital expenditures for fiscal 2025 were only $12.7 billion, starkly contrasting with Amazon's planned $200 billion for 2026, highlighting Apple's conservative approach to AI infrastructure investment, which may mitigate future financial risks.
- Core Business Advantages: Apple's business model relies on a powerful brand and the integration of hardware, software, and services, as consumers purchase Apple products not just for computing power but to engage in a seamless ecosystem, thereby enhancing customer loyalty.
- Financial Health Status: In the first quarter of fiscal 2026, Apple reported revenue of $143.8 billion, a 16% year-over-year increase, with earnings per share rising 19% to $2.84, showcasing strong performance in its high-margin services segment and reinforcing its market position.
- Future Outlook and Risks: While the iPhone accounts for over half of the company's total revenue, losing consumer interest could impact the business; however, Apple's ability to leverage AI without massive capital expenditures demonstrates its competitive edge in the AI era.
See More
Analysis of Alphabet's Future Growth Potential
- Core Business Stability: Alphabet's search segment achieved double-digit growth in 2025, with similar expectations for 2026, despite a slight decline in network revenue; this stable structure supports future investments and growth initiatives.
- Hidden Value of YouTube: YouTube generated over $40 billion in ad revenue last year, with total revenue exceeding $60 billion when including subscriptions, establishing itself as the largest streaming service globally and highlighting its critical role in the modern media landscape.
- Rapid Growth of Google Cloud: Google Cloud experienced a 48% revenue increase in the latest quarter, reaching $17.7 billion, with an operating margin nearing 30%, showcasing its potential as a growth engine for Alphabet, particularly amid rising demand for AI infrastructure.
- Investment Opportunities in Other Bets: Alphabet's ventures like Verily Health and Waymo are rapidly evolving, with Verily focusing on AI-driven precision health and Waymo expanding in autonomous driving, indicating significant market potential that could yield long-term benefits for the company.
See More
Apple's Earnings Report Shows Strong Growth
- Strong Financial Performance: Apple's first fiscal quarter revenue reached $143.8 billion, a 16% year-over-year increase, while earnings per share surged 19% to $2.84, demonstrating robust sales momentum during the holiday season and solidifying its market position.
- Capital Expenditure Comparison: In stark contrast to Amazon's planned $200 billion spending in 2026, Apple's capital expenditures were only $12.7 billion in 2025, highlighting its capital-light operational model that allows for flexibility in the AI infrastructure race.
- Record Services Revenue: The company's high-margin services segment achieved an all-time high this quarter, indicating effective monetization of its vast installed base of over 2.5 billion active devices, driving sustained revenue growth.
- Brand and Ecosystem Advantage: Apple's strong brand and seamless integration of hardware, software, and services set it apart in the competitive landscape; despite risks such as declining iPhone sales, the sticky customer experience provided by its ecosystem remains crucial for long-term success.
See More
