Tuesday's Major Stock Market Highlights: Morning News Summary!
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 16 2025
0mins
Should l Buy GOOG?
Source: TipRanks
- Market Coverage: TipRanks provides updates on the latest stock market stories and trends for traders.
- Resource Availability: Additional stock market news can be found on the TipRanks platform.
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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: 302.820
Low
255.00
Averages
336.08
High
400.00
Current: 302.820
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.
Amazon and Alphabet Earnings Reveal AI Growth Potential
- Amazon Cloud Acceleration: Amazon's Q4 sales rose 14% year-over-year to $213.4 billion, with AWS revenue increasing 24% to $35.6 billion, highlighting AI's critical role in driving growth and marking the fastest growth in 13 quarters.
- Strong Advertising Revenue: Amazon's advertising revenue grew 23% year-over-year to $21.3 billion, subscription services rose 14% to $13.1 billion, third-party seller services increased 11% to $52.8 billion, and online store revenue climbed 10% to $83.0 billion, indicating broad and sustained financial momentum.
- Google Cloud Rapid Growth: Alphabet's total revenue grew 18% year-over-year in Q4, with Google Cloud revenue surging 48%, significantly outpacing Amazon's growth, showcasing Google's strong performance and market potential in the AI sector.
- Risk-Reward Tradeoff: While Amazon and Alphabet have similar P/E ratios of 28.6 and 28.1 respectively, Alphabet's faster cloud growth may offer higher returns, although both companies' substantial spending plans introduce increased investment risks.
See More
Google CEO Discusses AI Investments Amid Bubble Concerns
- Strategic AI Investments: Google CEO Sundar Pichai acknowledged concerns about an AI bubble but emphasized that the company's investments in AI infrastructure and innovation are strategic, aimed at capturing long-term growth opportunities based on technological progress.
- Potential of AI Revolution: Pichai compared the current AI revolution to an industrial revolution, asserting that its speed and scale are unprecedented, highlighting how Google's AI work underpins multiple businesses, including Search, YouTube, and Cloud, showcasing AI's foundational role in future growth.
- AGI and Human Role: DeepMind co-founder Demis Hassabis stressed that artificial general intelligence (AGI) is a long-term goal, noting that today's AI tools enhance human expertise rather than replace it, while urging responsible management of technical and economic risks in addressing global challenges.
- Impact on Skills and Employment: Google SVP James Manyika pointed out the significant impact of AI on employment, calling for governments and organizations to focus on upskilling and task-based workforce planning to prepare for the evolving labor market, emphasizing the foundational importance of investing in skills and literacy.
See More
Baupost Group's Investment Moves in Q4
- New Investment Position: Baupost Group established a new stake in Amazon during Q4, making it the fund's second-largest holding at 9.3% of assets, reflecting confidence in the e-commerce and cloud giant despite differing views from Buffett.
- Portfolio Adjustments: The fund completely exited its position in PagSeguro Digital in Q4, indicating a strategic portfolio adjustment likely based on market performance and future expectations.
- Top Holdings: As of December 31, Restaurant Brands International remains Baupost's largest holding, indicating sustained confidence in the restaurant sector, and it was also the top holding in Q3, showcasing stability.
- Market Performance Comparison: Amazon was the worst-performing stock among the Magnificent Seven in 2025, and Baupost's investment decision may be based on optimism regarding its cloud segment growth, which will test the effectiveness of Klarman's strategy against Buffett's reduction in exposure.
See More
Amazon Shares Experience Worst Decline Since 2006: Is Now the Right Moment to Invest?
- Stock Performance: Amazon.com stock has experienced a challenging start to the year.
- Investment Opportunity: The current stock situation may present a buying opportunity for investors optimistic about the potential returns from significant spending on artificial intelligence.
See More
GOOGL Stock Volatility Analysis and Investment Opportunity
- Volatility Skew Signal: The volatility skew of GOOGL stock indicates a relatively stable state, and despite a 3% decline since the beginning of the year, the changes in implied volatility across strike prices suggest a potentially optimistic outlook for investors, presenting an opportunity to buy at a relative discount.
- Options Market Dynamics: For the upcoming March 20 expiration, while the implied volatility of puts gradually rises at lower strike prices, the overall stability of call options' implied volatility indicates that demand for calls may be underestimated, thus providing potential profit opportunities for investors.
- Price Expectation Range: According to the Black-Scholes model, GOOGL stock is expected to trade between $295 and $325 over the next 30 days, with probability density peaking between $301 and $315, offering investors a clearer trading strategy basis amidst current market uncertainties.
- Bullish Call Option Strategy: Given the market intelligence, investors may find the 310/315 bull call spread appealing, which requires GOOGL stock to exceed the $315 strike price at expiration to achieve a maximum payout of nearly 144%, with a breakeven point at $312.05, further enhancing the trade's probabilistic credibility.
See More
Cloud Computing Drives Growth in AI Investment
- Market Concern on AI Spending: The market is worried about artificial intelligence (AI) spending, as major investments from companies like Amazon, Google, and Microsoft have yet to yield significant returns, leading to investor skepticism regarding short-term capital returns.
- Cloud Business Growth: Amazon Web Services (AWS) achieved a 24% year-over-year growth in Q4, driven by triple-digit revenue growth from its in-house designed chips, and if this growth can be sustained, Amazon will benefit significantly overall.
- Rapid Growth of Google Cloud: Google Cloud posted an astonishing 48% growth in Q4, adding $5.71 billion in revenue year-over-year, and while AWS added $6.79 billion in new business, Google Cloud's rapid expansion highlights its market potential, especially with its leading generative AI model, Gemini.
- Strong Performance of Microsoft Azure: Although Microsoft does not disclose Azure's profitability separately, its impressive 39% year-over-year growth indicates that Azure remains a key reason to own Microsoft stock, particularly with a massive $625 billion backlog for its services, reflecting a huge demand for AI computing power.
See More
Amazon and Alphabet Earnings Reveal AI Growth Potential
- Amazon Cloud Acceleration: Amazon's Q4 sales rose 14% year-over-year to $213.4 billion, with AWS revenue increasing 24% to $35.6 billion, highlighting AI's critical role in driving growth and marking the fastest growth in 13 quarters.
- Strong Advertising Revenue: Amazon's advertising revenue grew 23% year-over-year to $21.3 billion, subscription services rose 14% to $13.1 billion, third-party seller services increased 11% to $52.8 billion, and online store revenue climbed 10% to $83.0 billion, indicating broad and sustained financial momentum.
- Google Cloud Rapid Growth: Alphabet's total revenue grew 18% year-over-year in Q4, with Google Cloud revenue surging 48%, significantly outpacing Amazon's growth, showcasing Google's strong performance and market potential in the AI sector.
- Risk-Reward Tradeoff: While Amazon and Alphabet have similar P/E ratios of 28.6 and 28.1 respectively, Alphabet's faster cloud growth may offer higher returns, although both companies' substantial spending plans introduce increased investment risks.
See More
Google CEO Discusses AI Investments Amid Bubble Concerns
- Strategic AI Investments: Google CEO Sundar Pichai acknowledged concerns about an AI bubble but emphasized that the company's investments in AI infrastructure and innovation are strategic, aimed at capturing long-term growth opportunities based on technological progress.
- Potential of AI Revolution: Pichai compared the current AI revolution to an industrial revolution, asserting that its speed and scale are unprecedented, highlighting how Google's AI work underpins multiple businesses, including Search, YouTube, and Cloud, showcasing AI's foundational role in future growth.
- AGI and Human Role: DeepMind co-founder Demis Hassabis stressed that artificial general intelligence (AGI) is a long-term goal, noting that today's AI tools enhance human expertise rather than replace it, while urging responsible management of technical and economic risks in addressing global challenges.
- Impact on Skills and Employment: Google SVP James Manyika pointed out the significant impact of AI on employment, calling for governments and organizations to focus on upskilling and task-based workforce planning to prepare for the evolving labor market, emphasizing the foundational importance of investing in skills and literacy.
See More
Baupost Group's Investment Moves in Q4
- New Investment Position: Baupost Group established a new stake in Amazon during Q4, making it the fund's second-largest holding at 9.3% of assets, reflecting confidence in the e-commerce and cloud giant despite differing views from Buffett.
- Portfolio Adjustments: The fund completely exited its position in PagSeguro Digital in Q4, indicating a strategic portfolio adjustment likely based on market performance and future expectations.
- Top Holdings: As of December 31, Restaurant Brands International remains Baupost's largest holding, indicating sustained confidence in the restaurant sector, and it was also the top holding in Q3, showcasing stability.
- Market Performance Comparison: Amazon was the worst-performing stock among the Magnificent Seven in 2025, and Baupost's investment decision may be based on optimism regarding its cloud segment growth, which will test the effectiveness of Klarman's strategy against Buffett's reduction in exposure.
See More
Amazon Shares Experience Worst Decline Since 2006: Is Now the Right Moment to Invest?
- Stock Performance: Amazon.com stock has experienced a challenging start to the year.
- Investment Opportunity: The current stock situation may present a buying opportunity for investors optimistic about the potential returns from significant spending on artificial intelligence.
See More
GOOGL Stock Volatility Analysis and Investment Opportunity
- Volatility Skew Signal: The volatility skew of GOOGL stock indicates a relatively stable state, and despite a 3% decline since the beginning of the year, the changes in implied volatility across strike prices suggest a potentially optimistic outlook for investors, presenting an opportunity to buy at a relative discount.
- Options Market Dynamics: For the upcoming March 20 expiration, while the implied volatility of puts gradually rises at lower strike prices, the overall stability of call options' implied volatility indicates that demand for calls may be underestimated, thus providing potential profit opportunities for investors.
- Price Expectation Range: According to the Black-Scholes model, GOOGL stock is expected to trade between $295 and $325 over the next 30 days, with probability density peaking between $301 and $315, offering investors a clearer trading strategy basis amidst current market uncertainties.
- Bullish Call Option Strategy: Given the market intelligence, investors may find the 310/315 bull call spread appealing, which requires GOOGL stock to exceed the $315 strike price at expiration to achieve a maximum payout of nearly 144%, with a breakeven point at $312.05, further enhancing the trade's probabilistic credibility.
See More
Cloud Computing Drives Growth in AI Investment
- Market Concern on AI Spending: The market is worried about artificial intelligence (AI) spending, as major investments from companies like Amazon, Google, and Microsoft have yet to yield significant returns, leading to investor skepticism regarding short-term capital returns.
- Cloud Business Growth: Amazon Web Services (AWS) achieved a 24% year-over-year growth in Q4, driven by triple-digit revenue growth from its in-house designed chips, and if this growth can be sustained, Amazon will benefit significantly overall.
- Rapid Growth of Google Cloud: Google Cloud posted an astonishing 48% growth in Q4, adding $5.71 billion in revenue year-over-year, and while AWS added $6.79 billion in new business, Google Cloud's rapid expansion highlights its market potential, especially with its leading generative AI model, Gemini.
- Strong Performance of Microsoft Azure: Although Microsoft does not disclose Azure's profitability separately, its impressive 39% year-over-year growth indicates that Azure remains a key reason to own Microsoft stock, particularly with a massive $625 billion backlog for its services, reflecting a huge demand for AI computing power.
See More
