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Keywords
GOOGLshare buybacksdata centersearnings
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/28/2026 | 325.61 |
| Change that session | +1.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Alphabet Swaps Buybacks for Data Centers. Wall Street Is Getting Nervous
- This Magnificent Seven Stock Could Have 100% Upside. Here’s the Case.
Alphabet (GOOG) has a 12-month price target of $423.95 and a five-year base case of $710.20 by October 2031, a total return of 121.41%, and the article rates the stock a buy with moderately high confidence. Shares traded around $318.28 early Friday, down 7.72% for the week and 8.38% for the month but up 26.37% over 12 months. Second-quarter revenue rose 24.2% to $119.80 billion, while Cloud segment revenue reached $24.77 billion and its operating margin expanded to 35.6% from 20.7%. On the other side, capex doubled to $44.92 billion, free cash flow turned negative at $5.86 billion, long-term debt rose from $46.5 billion to $98.2 billion, and buybacks were suspended. The bear case is $365.73.
- Alphabet's 2 Classes of Common Stock Trade About 1% Apart. Here's the One I'd Buy.
Alphabet's Class A shares (GOOGL) trade about 1% above Class C shares (GOOG), roughly $335 versus $331 at the time of writing. Only Class A carries a vote; Class B shares, which carry 10 votes each and don't trade publicly, are held mainly by co-founders Larry Page and Sergey Brin, who had around 53% of voting power as of April 6. All classes otherwise share the same 22-cent quarterly dividend and claim on net income. Alphabet bought far more Class C stock than Class A from 2023 through 2025 and made no buybacks in the first half of 2026, while the Class A premium has stayed near 1% since September. The author sees the vote as nearly symbolic given the founders' majority, so Class C offers the same business at a slightly lower valuation; for a $10,000 investment, it buys about a third of a share more, roughly $114 of extra stock. The gap has held within around 2% since 2022 and may narrow if buybacks resume.
- Prediction: Alphabet Will Soar After Oct. 28
The author predicts Alphabet (GOOG, GOOGL) shares could soar after its Q3 earnings report on Oct. 28. He cites Google Cloud revenue up 82% year over year in Q2 with a 36% operating margin, and Search revenue up 17%. Alphabet expects about $200 billion in 2026 capital expenditures, mostly for data centers, while revenue from selling its TPU chips to outside clients is expected mainly in 2027. Wall Street analysts estimate 25% growth, and the author argues that a valuation of 28 times operating income, in line with $4 trillion peers, is reasonable, with the stock still more than 10% below its all-time high.
- This Nvidia chart shows why the AI compute shortage remains acute
Demand for AI infrastructure remains strong, with rental rates for older-generation Nvidia (NVDA) Blackwell and Hopper GPUs still rising, a sign the compute shortage remains acute, according to BCA Research chief economist Peter Berezin. Berezin said he expects an AI capex bust, but probably not until 2028. SK Hynix (SKHY) plans to return a total of $75 billion to shareholders this year through buybacks and dividends, after record third-quarter revenue and operating profit for a sixth straight quarter. Anthropic's IPO prospectus showed first-half 2026 revenue rising to $16.3 billion from $1.1 billion a year earlier, with customers outside the top five making up about 79% of sales, up from 64% in the first quarter. The company had about $131.7 billion in cash, cash equivalents and short-term investments as of June 30, 2026.
- Why OneSpaWorld Stock Is Up Today
OneSpaWorld (OSW) shares rose 12.50% on Wednesday after the company raised its dividend by 25%. Third-quarter revenue grew 7% year over year to $276.5 million, driven by fleet expansion from newbuilds and higher guest spending, while the number of ships with its health and wellness centers rose to 207 from 204. Adjusted net income climbed 13% to $34.8 million, or $0.34 per share, beating analysts' estimate of $0.31. Management raised full-year guidance, now seeing revenue up roughly 10% to over $1 billion and adjusted EBITDA up 13% to about $139 million. The company also announced a new $100 million share buyback and lifted its quarterly dividend to $0.0625 per share, placing its forward yield at nearly 1%.
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Latest news
- Marvell Wants Lumentum. Here’s Why Coherent Could Win.
Bloomberg reported on October 28 that Marvell is in advanced discussions to acquire Lumentum, though no definitive agreement has been announced. Lumentum shares rose sharply on the news while Marvell fell in after-hours trading, and Coherent gained about 3.5% after hours. Per Bloomberg’s October 9 report, Lumentum’s optical capacity is effectively sold out through early 2029, and CEO Michael Hurlston said the company could not meet about 70% of expected demand for certain products through 2027. The article argues that a Marvell–Lumentum deal could make Coherent’s independent manufacturing more valuable, especially since Nvidia has invested $2 billion in Coherent.
- Google Cloud Revenue Just Grew 103%, so Why Is the Stock Falling?
Alphabet reported third-quarter results after the market close on Wednesday. Revenue rose 25% to $127.6 billion, below analyst estimates of $127.9 billion, while diluted EPS of $2.12 fell 26% against expectations of $3.01. Operating income climbed 30% to $40.6 billion. Google Cloud revenue soared 103% to $30.7 billion, with an operating margin of 36.2%, and CEO Sundar Pichai cited huge demand for AI infrastructure. The EPS decline mainly reflected an $8.2 billion loss on equity investments, including SpaceX, compared with gains of nearly $12.8 billion a year earlier. Alphabet expects capex of about $200 billion in 2026 and $300 billion in 2027, leaving free cash flow at -$9.1 billion, and the stock fell as much as 11% after hours.
- 2 Millionaire-Maker Custom Silicon Stocks Powering the AI Infrastructure Supercycle
The article profiles Broadcom and Taiwan Semiconductor Manufacturing (TSMC) as leading custom-silicon players. Broadcom, which partners with Alphabet on TPUs and counts Meta, OpenAI, and Anthropic among its ASIC customers, reported third-quarter AI semiconductor revenue up 221% to $16.7 billion and net income up roughly 216% to $13.1 billion. It expects fourth-quarter AI revenue to rise 236% to $21.7 billion, and the stock trades at about 28 times expected earnings this year. TSMC manufactures chips designed by its customers and, according to many estimates, controls over 90% of the high-end AI chip market. Its stock has delivered a total return of roughly 4,720% over 15 years. The author notes that both stocks' valuations have been volatile amid AI bubble concerns, while their market positions remain strong.
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The article looks at three founder-led businesses as AI spending draws scrutiny after Alphabet reported negative free cash flow of US$9.07 billion and raised its AI infrastructure capex guidance. Sansan, a Japanese SaaS group founded by Chika Terada, generates about ¥48.9 billion from its Sansan and Bill One segment, with a market value near ¥273.9 billion. Spotify Technology, where Daniel Ek still shapes the long-term vision, earns about €18.8 billion in revenue, mostly from Premium subscriptions, and is valued near US$114.2 billion. China Medical System Holdings, controlled by Treasure Sea Limited, generates about CN¥7.3 billion from its Integrated Business and is valued near HK$24 billion. The article argues founder leadership may encourage more careful capital protection and highlights capital allocation and AI strategy as key questions for these companies.
- October 29: What to Read Before the Stock Market Opens
A roundup of domestic and international financial news from the past 24 hours. In Vietnam, Digiworld (DGW) reported third-quarter profit up 66% to VND 276 billion, though its shares still fell to the floor price, while Thế Giới Di Động (MWG) posted third-quarter net profit up 75% to nearly VND 3.1 trillion, and VIB reached nearly VND 7,600 billion in nine-month pre-tax profit, up 8%. Pi Group's PDCC repurchased VND 900 billion of bonds before maturity, spending nearly VND 996.3 billion. Globally, Beijing is urgently seeking to support its weakening stock market amid an AI sell-off, while the US pending home sales index fell 7.3% to 66.0 points in September 2026, its lowest since 2001.
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