Oil prices hit a five-month high after attacks on Middle East infrastructure, and the article highlights three undervalued stocks flagged by a cash flow screen. Mueller Water Products, valued at about US$3.4b, makes valves, hydrants and metering systems, with Water Flow Solutions generating about US$824 million of sales and Water Management Solutions about US$655 million. Wintrust Financial, a Midwest community banking, specialty finance and wealth group valued at about US$9.6b, earns recurring income from Community Banking, which contributes about US$2.1b of revenue. Alphabet, valued at about US$4,145.1b, leans on Google Cloud, which contributes about US$77.6b, turned operating profitable as of 2023, and ranks #3 globally behind AWS and Azure with over 11% market share. The full screen surfaced 99 more businesses not covered here.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
GOOGLoil pricesvaluationcloud computing
Open a keyword to see other news on the same topic.
Related news
- Alphabet Offers the Most Compelling Blend of Asymmetric AI Upside and Safety Across the Magnificent 7
The author argues that Alphabet offers the best mix of AI upside and safety among the Magnificent 7, citing 950 million monthly active users for the Gemini app and Google Cloud revenue of $24.77 billion, up 82% year over year. Second-quarter revenue reached $119.80 billion, up 24.2%, with operating margin widening to 34%. The author considers the P/E of 15 generous because a $99.03 billion unrealized equity gain inflated recent net income, though the balance sheet is strong. The main risk named is spending: 2026 capex guidance of $175 billion to $185 billion pushed second-quarter free cash flow to negative $5.86 billion, long-term debt rose from $46.5 billion to $98.2 billion, and buybacks were suspended. The author says investors should watch whether Cloud growth and earnings consistency keep pace with the capex expansion.
- Microsoft vs. Alphabet: Is GOOGL’s Cloud Growth Worth More Than Investors Think?
Microsoft (MSFT) and Alphabet (GOOGL) trade at forward P/E ratios of 25.13 and 22.83, respectively. Google Cloud revenue jumped 82% to $24.8 billion in the second quarter, with operating income rising from $2.8 billion to $8.8 billion, while Azure and other cloud services grew 43%. Both companies face heavy infrastructure spending: Microsoft spent $35.8 billion on property and equipment, pushing its cloud gross margin down to 65%, while Alphabet spent $44.9 billion, leaving roughly negative $5.85 billion in quarterly free cash flow. The article argues Alphabet's $9.11 EPS is unreliable because about $98 billion came from net other income, so its 30% operating-income growth better reflects underlying performance. Microsoft has a more diversified earnings base and higher consolidated operating margins, but the key question is whether either company can turn AI demand into cash after paying for infrastructure.
- If I Could Only Buy 1 Artificial Intelligence (AI) Stock Before the Market Crashes, It Would Be This One
The author warns that the S&P 500 Shiller CAPE ratio, above 41, is extremely elevated, and says investors should favor companies with durable advantages before a downturn. Alphabet is highlighted for products embedded in everyday life, a diversified mix of advertising and Google Cloud, and vertical integration including custom TPU chips. In the second quarter, Alphabet reported revenue of $119.8 billion, up 24%, Google Cloud revenue up 82% to $24.8 billion, operating cash flow of $39.1 billion and $242.5 billion in cash and marketable securities. The article notes Alphabet fell 55% in 2008, about 31% in the COVID-19 crash and about 39% in 2022, and the author suggests buying gradually during dips and holding long term.
- 1 Analyst Thinks Alphabet Stock Could Jump 20% on AI Chip Demand. Is He Right?
J.P. Morgan analyst Doug Anmuth raised his price target for Alphabet stock to $425, about 23% above the current price, betting that selling its custom TPU AI processors to other companies will accelerate cloud revenue. Google Cloud sales rose 82% to $24.8 billion in the second quarter of 2026, and Anmuth thinks cloud revenue could double in the third quarter. Piper Sandler's Thomas Champion estimates Google's processor sales could reach $104 billion by 2028, compared with Alphabet's total second-quarter revenue of $120 billion. Alphabet reported Q2 EPS of $9.11, up 294%, but some investors worry about its roughly $200 billion AI infrastructure spending this year. The stock trades at a trailing P/E of about 17, versus a tech sector average of 33.
- Alphabet's (GOOGL) Low P/E Is Misleading, but the AI Opportunity Is Real
Alphabet (GOOGL) shares gained 3.43% over six months to October 15, but its 17.62x trailing P/E is misleading because reported earnings were inflated by large investment gains. Google Search revenue rose 17% to $63.3 billion in Q2 2026, even as ChatGPT and Claude offer alternatives to traditional search. Google Cloud revenue jumped 82% to $24.8 billion with a 35.6% operating margin, and its $514 billion backlog is more than half expected to convert to revenue over the next 24 months. About $99 billion of gains, largely unrealized, could reverse if valuations fall; a rough adjustment puts the trailing multiple near 26x, versus a 22.83x forward P/E.
- Bank of England investigates Google outage
The Bank of England is investigating a Google Cloud outage that left millions of people struggling to access their banks. A problem at a London data centre disrupted services at several of Britain's biggest banks, including Lloyds, HSBC, Bank of Scotland, NatWest, Halifax and Revolut, leaving customers unable to withdraw money or pay by card. Google blamed a “power event” without giving details. The FCA, Bank of England and PRA are in contact with Google, and in the most extreme case it could face an official review or restrictions on working with banks. The Treasury committee has asked regulators to explain their response and raised compensation for affected customers, while former minister John Glen called for the security systems of Google, Amazon and Microsoft to be investigated.
Related markets
Latest news
- Microsoft, Alphabet, Goldman Sachs Join Growing List of Companies Objecting to Tokenized Stocks
Microsoft, Alphabet, Goldman Sachs, Qualcomm, Caterpillar, McDonald’s and Western Digital have objected to their shares trading on OKXICE TSV, according to an Oct. 19 notice. The total number of objecting issuers rose to 16 from nine in the venue’s Oct. 15 notice, though neither notice gives reasons. The updated notice also says the venue may offer stocks tokenized by the issuers themselves, not only by third parties. OKXICE TSV is a planned 24/7 tokenized stock venue from OKX and ICE, running on Uniswap v4 pools on XLayer with stablecoin settlement under the SEC's innovation exemption. Nasdaq, which has its own tokenized securities pilot, said it will opt its shares out of the exemption.
- Visa partners with Mesh for seamless stablecoin payments at stores
According to a speaker in the discussion, the main obstacle for crypto payments is user experience, as paying with crypto at the final step is nearly impossible for most people. The partnership with Visa is said to bring 774 million crypto owners to shop at 175 million merchants worldwide that accept Visa cards. Users can tap their phones to pay from wallets such as Coinbase, MetaMask or Koshi, instead of copying alphanumeric addresses or waiting for settlement. The speaker argues that tap-to-pay and QR code payments are becoming the new norm as consumers increasingly avoid cash.
- 3M: 3 Key Takeaways for Long-Term Investors
On its third-quarter 2026 earnings call on Oct. 20, 2026, 3M reported expanding profit margins and raised full-year earnings guidance as orders accelerated. The company issued Amazon warrants for up to 3.2 million shares, tied to $6 billion in cumulative sales of optical connectivity and data center products over seven years. Five-year new product sales are up 34% year to date to nearly $3 billion, and new product vitality has risen to the mid-teens from 11% in 2024. 3M increased prices to fully offset rising raw material and oil costs, and it remains confident in organic growth above 3.5% this year.
- Microsoft (MSFT) Withdraws From UK AI Data Center Project
Microsoft has withdrawn as anchor tenant from Nscale's planned AI data center in Loughton, Essex, citing power supply delays. The article says the site is not expected to receive sufficient grid power until the 2030s, far beyond Microsoft's planning horizon, so the company judged the power-access risk too high for its Azure plans. Nscale must now search for new hyperscale tenants for the site. The article notes Microsoft is already committing around US$175b to US$190b to 2026 infrastructure and has locked in a 1,100 MW power agreement with NiSource.
- BlackRock Is Building a Bitcoin ETF for Investors Who Can't Stomach the Swings
On Oct. 19, BlackRock filed a preliminary prospectus with the SEC for the iShares Bitcoin Managed Protection ETF, ticker PBIT, which aims to deliver Bitcoin-linked gains up to a cap while cushioning some losses. Instead of holding Bitcoin directly, the fund would use options on IBIT across three overlapping, roughly three-month tranches, buying a call struck near 90% of IBIT's starting price for the floor and selling a higher-strike call to cap upside, with Treasury bills held alongside. Each tranche's loss is capped at roughly 10% before fees, but BlackRock retains broad discretion to change terms, and the fee field is still blank. The filing could take effect as early as January 2027.
- Amazon Stock Costs More Than the Market. I'd Still Buy It for the Next 5 Years.
Amazon shares rose about 5% on Monday but trade near $262, roughly 8% below their August 3 record close of $284.02. The author argues the right benchmark for today's buyers is an S&P 500 index fund, which compounded about 10% a year with dividends reinvested from 1928 through 2025, and expects Amazon to beat it over five years because profits are growing faster than sales. Operating income rose from $22.9 billion in 2020 to $93.7 billion in the 12 months through June, up 23%, with AWS contributing $54.7 billion, about 58% of the total. Net purchases of property and equipment rose $66.1 billion over the trailing 12 months, mainly for AI, and free cash flow over the same span was a $7.6 billion outflow. The author expects earnings to grow about 15% a year through 2031 and sees the stock beating the index by a couple of percentage points a year, despite trading at about 25 times expected 2027 earnings.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.