Risks of Private Equity and Private Debt
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GOOGL?
Source: CNBC
- Market Confidence Erosion: The stocks of private equity firms like KKR, Blackstone, and Apollo have dropped between 20% and 21% year-to-date, reflecting a decline in investor confidence regarding their future profitability, which could impact their financing capabilities and market position.
- Blue Owl Capital Crisis: Blue Owl's stock, OWL, has fallen over 27% this year due to its suspension of regular redemptions on certain funds, raising investor concerns about its ability to fulfill capital commitments, potentially triggering broader market panic.
- Rising Credit Risks: The opacity of the private credit market, particularly loans to small and medium-sized enterprises, has increased skepticism about the credit quality of these
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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: 302.850
Low
305.00
Averages
374.25
High
400.00
Current: 302.850
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.
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- Blue Owl Capital Crisis: Blue Owl's stock, OWL, has fallen over 27% this year due to its suspension of regular redemptions on certain funds, raising investor concerns about its ability to fulfill capital commitments, potentially triggering broader market panic.
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- Market Sentiment Fluctuations: While Trump's tariff policies have caused short-term market volatility, signs of overall economic recovery may support the stock market in the medium to long term, prompting investors to monitor potential impacts of future policy changes.
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- Market Confidence Erosion: The stocks of private equity firms like KKR, Blackstone, and Apollo have dropped between 20% and 21% year-to-date, reflecting a decline in investor confidence regarding their future profitability, which could impact their financing capabilities and market position.
- Blue Owl Capital Crisis: Blue Owl's stock, OWL, has fallen over 27% this year due to its suspension of regular redemptions on certain funds, raising investor concerns about its ability to fulfill capital commitments, potentially triggering broader market panic.
- Rising Credit Risks: The opacity of the private credit market, particularly loans to small and medium-sized enterprises, has increased skepticism about the credit quality of these
See More
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- Massive User Base: In July 2023, Alphabet CEO Sundar Pichai revealed that the company has 15 products serving half a billion users each and six products serving over 2 billion users, showcasing its strong global market influence and user retention.
- Surging Daily Active Users: Meta Platforms reported 3.58 billion daily active users in Q4 2025, further solidifying its dominance in the social media space and driving continuous growth in advertising revenue.
- Strong Financial Position: As of December 31, 2025, Alphabet and Meta held $126.8 billion and $81.6 billion in cash and marketable securities, respectively, with robust cash flows supporting their significant strategic investments in artificial intelligence.
- Capital Expenditure Plans: Both companies plan to invest between $290 billion and $320 billion in capital expenditures in 2026 to enhance computing capacity and technical infrastructure, ensuring they maintain a competitive edge in the rapidly evolving AI market.
See More
Druckenmiller Sells Nvidia Shares, Increases Alphabet Holdings
- Investment Strategy Shift: Stanley Druckenmiller sold all his Nvidia (NVDA) shares in 2024, considering the stock overvalued, yet expressed regret over this decision, indicating his keen insight into market dynamics.
- Significant Valuation Change: Nvidia's price-to-earnings ratio has dropped from 48x in 2024 to about 24x now, reflecting a market reassessment of its future growth, potentially providing investors with a more attractive entry point.
- Increased Alphabet Holdings: Druckenmiller raised his stake in Alphabet by 276%, now owning 385,000 shares, which constitutes 2.6% of his portfolio, demonstrating his confidence in the company's potential in the AI sector.
- Strong Cloud Business Growth: Alphabet's Google Cloud saw a 48% revenue increase in the latest quarter, exceeding $17 billion, indicating sustained demand for AI infrastructure and solutions, which may yield long-term returns for Druckenmiller's investment.
See More
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- Core Business Growth: Alphabet's core search revenue increased by 17% year-over-year, and YouTube's annual revenue surpassed $60 billion, demonstrating the company's strong performance in advertising and subscription services, further solidifying its leadership in the digital advertising market.
- AI User Growth: The Gemini app boasts over 750 million monthly active users, and the enterprise version has sold over 8 million paid seats in just four months, indicating rapid expansion and market acceptance in the AI sector.
- Infrastructure Enhancement: Alphabet has significantly improved its AI infrastructure by incorporating Nvidia GPUs and its proprietary tensor processing units, with expectations to reduce Gemini's serving unit costs by over 75% by 2025, providing robust support for future AI applications.
- Cloud Computing Potential: With new customers coming in rapidly, Alphabet's cloud services face high switching costs, but successfully attracting clients from competitors could enhance customer retention and drive long-term growth.
See More
Druckenmiller Sells Nvidia Shares, Eyes Alphabet
- Druckenmiller's Investment Strategy: Stanley Druckenmiller sold all his Nvidia (NASDAQ: NVDA) shares in 2024, although he indicated he would consider buying again at the right price, reflecting his cautious stance on current market valuations.
- Nvidia Valuation Shift: Nvidia's price-to-earnings ratio has dropped from 48x in 2024 to about 24x now, indicating a market recalibration of growth expectations, which may present a re-entry opportunity for investors.
- Increased Alphabet Holdings: Druckenmiller boosted his Alphabet (NASDAQ: GOOGL) stake by 276% in Q4, now owning 385,000 shares, which constitutes 2.6% of his portfolio, suggesting optimism about the company's potential in the AI sector.
- AI Market Outlook: With the AI market projected to reach trillions in the coming years, Druckenmiller's investment choices may reflect confidence in the sustained demand for AI infrastructure and solutions.
See More
