Out Fox The $treet

  Google reported strong Q3'23 results, beating analyst revenue estimates by nearly $1 billion. Google Cloud grew by 22% to $8.4 billion, but investors focused on the small miss in this segment rather than the big beats in other categories. The stock is cheap at ~13.5x EPS targets and a relative bargain to other tech giants. After reporting a generally strong quarter,  Alphabet Inc.  ( NASDAQ: GOOG ,  NASDAQ: GOOGL ), aka Google, has seen the stock collapse. The AI-powered Search giant disappointed the market with weakness in the Cloud sector, yet the results weren't so spooky. My  investment thesis  is ultra Bullish with Google trading down nearly $20 from the recent highs that weren't even above the 2021 highs, unlike other mega tech stocks. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Google reports Q2 2023 results after the close today, July 25, with revenue growth reaccelerating to 4.4%. The internet search giant appears to be working with Apple Inc. on internal AI plans in a good sign Google Cloud will see strong growth. The stock remains cheap at only 14x non-GAAP EPS targets for '25 with additional upside of AI and further efficiency gains. One major outcome of the apparent  Apple Inc.  ( AAPL ) AI endeavor is a heavy reliance on  Alphabet Inc.  ( NASDAQ: GOOG ,  NASDAQ: GOOGL ), aka Google. The tech giant has invested heavily in AI tools over the last  several years and appears well-positioned with Google Cloud to benefit from surging demand for data center space. My  investment thesis  remains ultra Bullish on Google heading into Q2 '23 earnings after the close on Tuesday, July 25. Read the full item on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details....

  Alphabet/Google continues to trade risk-off due to fears that Bing Chat is a major risk to the search market. The market fears over Google losing default search deals for mobile traffic from Apple and Samsung are misplaced. Google stock trades at an EV of only ~11x '25 EPS estimates. Within days, media reports have suggested  Alphabet Inc.  ( NASDAQ: GOOG ,  NASDAQ: GOOGL ) aka Google was at risk of losing search mobile browser default settings due primarily to new AI options.  Microsoft Corporation  ( MSFT ) search  engine Bing is definitely a threat in AI, but the stock market is too fearful of this threat in Internet search. My  investment thesis  remains ultra Bullish on Google based on the cheap valuation and its dominant position in mobile search that is unlikely to be impacted by losing default browser settings. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for mor...

Google slumped last week following an underwhelming AI chat launch. The company obtains all of their profits from the Google Services business focused on Google search causing the market to excessively worry about competitive threats. The stock trades with an EV of 10x '25 non-GAAP EPS targets even before expected efficiency gains. Alphabet  ( NASDAQ: GOOG ,  NASDAQ: GOOGL ) collapsed this week following a failed answer in a tweet launching a new conversational AI service. The market was overly dramatic on the outcome of the AI event hosted by Google, especially considering ChatGPT  has several high profile failures. My  investment thesis  is ultra Bullish on the stock following the major dip back below $95. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Dec. 23 Rumble closed at a new low below $7. The stock has now crashed below $6.50 and looks set to make a run down to $5. Investors need to stay on the sidelines until some clarification exists on the lows.  Update - Dec. 6 Rumble fell to a low of $7.50 yesterday before the big bounce today. The stock has possibly set up a higher low, but the view remains to not chase at these valuations.  Original article was published on Nov. 20 Rumble reported a strong revenue jump in Q3'22, but the revenue base is still only $11 million. The 'neutral' video platform has impressive plans with new monetization products to reward content creators over time. The stock valuation doesn't match the current revenue base with a market cap of $3.7 billion based on the 375 million diluted shares providing limited upside to shareholders. The $5 price target remains in place as the likely path for the stock. This idea was discussed in more depth with members of my private investing com...

Google is the apparent winner of the NFL Sunday Ticket at a cost of $2+ billion. The financials of the NFL deal don't add up to a winning deal. The stock is cheap at ~13x EPS targets, but over paying for the Sunday Ticket is a bad move for shareholders. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   When DirecTV, still 70% owned by  AT&T  ( T ), didn't want to pay another $1.5 billion for the NFL Sunday Ticket, investors have to wonder why big tech wanted to pay even more.  Google  ( NASDAQ: GOOG ,  NASDAQ: GOOGL ) battled with  Apple  ( AAPL ) for the right to overpay for limited out-of-market NFL games. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Alphabet has dipped $400 on COVID-19 fears. The company has an EV down to only $670 billion due to $115 billion in net cash. A slash in travel ad revenues will cut $1-2 billion in quarterly revenues. The stock only trades at an EV of 12.2x '21 EPS targets. A $1,700 target is only 19.0x EPS targets. With analysts already warning on  Alphabet  ( GOOG ,  GOOGL ) losing ad revenue in the travel space, the stock has taken an amazing $400 hit from recent highs. While consumers Internet search usage may remain high, hotels and travel destinations aren't going to advertise on the platform with a lack of travelers. While the situation sounds dire in the short term, investors should buy the stock for the all but certain rebound in the digital ad space as the coronavirus fears dissipate in the next weeks or months. My  investment thesis  maintains a $1,700 price target on the stock based on no changes to 2021 estimates. Read the full article on Seeking A...

Alphabet missed Q4 revenue estimates by $790 million. The tech giant grew revenue at a 19% rate at constant currency. My price target remains $1,700 based on an EV/E of 20x '21 EPS estimates of $76. Alphabet  (NASDAQ: GOOG ) (NASDAQ: GOOGL ) appeared headed towards our  $1,700 price target  until the company disappointed the market with Q4 reported revenue growth of only 17%. The digital ad giant generates volatile revenue growth making the stock a buy anytime the Alphabet dips despite constant currency growth at 20% annual growth rates. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Alphabet reports a big revenue beat and as usual the earnings numbers are complex to dechiper since the company moved away from non-GAP numbers.

Alphabet made a small smartwatch technology purchase. The company has a long history of hardware failures and a smartwatch push will likely be no exception. Alphabet continues losing substantial amounts of money on Other Bets and generates low margins on hardware. The stock is incredibly cheap based on ex-cash, 2020 non-GAAP EPS estimates of up to $71. On Christmas Eve, my   previous research   extolled the benefits of buying   Alphabe t   ( GOOG ,   GOOGL ) despite doubts that the company would successfully transition to material hardware sales. The company appears to have an unhealthy appetite for hardware with the latest purchase suggesting another losing push into smartwatches. Regardless, the stock remains a buy even after a $115 rally in under a month to over $1,100. Read the full article on Seeking Alpha.  Disclosure: Long AAPL, FIT. Please review the disclaimer page for more details.   

Alphabet is positioned for substantial hardware revenue growth. The hardware division isn't positioned as a profit driver due to low margins. The smart speaker business isn't materializing as a direct profit driver as consumers shy away from voice commerce purchases. The stock remains cheap based on an enterprise value, trading at only 13.4x forward EPS estimates. As other tech giants make the move to high-margin services,  Alphabet ( GOOG ,  GOOGL ) continues making the odd shift into hardware. A big part of the move is to lock consumers into their services and advertising revenue streams. The stock remains incredibly cheap back below $1,000 as highlighted in my  previous research , but the push into hardware isn't likely to contribute to this valuation. Read the full article on Seeking Alpha.  Disclosure: Long AAPL. Please review the disclaimer page for more details. 

Google CEO confirmed the company wasn't planning on entering the Chinese search market. Oddly, Baidu ended down on the day despite this bullish news. The stock trades at only 13.5x '20 EPS estimates despite double the growth rate. Baidu   ( BIDU ) remains one of the more perplexing stocks in the market. Despite a blooming Chinese internet sector, the market always has an excuse for avoiding the stock. My long-term   investment thesis   hasn't changed, and the stock only becomes a better bargain on every dip. Read the full article on Seeking Alpha. 

Baidu continues to slump to multi-year lows. The Chinese company has growth opportunities outside internet search in voice assistants and self-driving cars, among others. The stock remains exceptionally cheap in the large-cap technology sector as margins rebound with the exit of transaction-related businesses. The general weakness in Chinese tech stocks provides a substantial opportunity for a stock like Baidu ( BIDU ). The internet search leader in China has in-roads to new technologies and the Chinese economy is still transitioning online while the economy is growing at one of the fastest rates in the world. My investment research continues to support buying weakness in the stock, especially on irrational fears related to Google ( GOOG , GOOGL ) entering the Chinese internet search market. Read the full article on Seeking Alpha. 

Amazon stands to benefit from growing digital ad revenue. Research reports support the digital ad market sustaining strong growth for the next few years. The online retail giant doesn't offer the best way to invest in ad market growth due to substantial retail operations. My biggest complaint that guides my  investment thesis  on  Amazon  ( AMZN ) is a lack of focus on running a profitable businesses. The thesis isn't exactly unique, but one area that provides an opportunity to change the equation is digital advertising leading Citibank to upgrade the stock with an incredible price target of $1,600. The numbers though aren't adding up to buying the stock for this reason. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

After another strong earnings report, Alphabet (GOOGL) is up $12 today to $829. The stock appears on a path to $1,000. RBC Capital Markets tech analyst Mark Mahaney places a $1,025 target on the stock. Alphabet trades at a meager 20 forward P/E multiple making one wonder if the inability to obtain a higher multiple is related to the market cap of nearly $560 billion or the potential problems in Europe. Either way, it appears the stock is on a path to $1,000. More research: Alphabet: Only Takes Minimal Financial Discipline Alphabet: EU Problems Disclosure: No position. Please review the disclaimer page for more details. 

Alphabet was downgraded by Wedbush suggesting the companies search business faces an inflection point. The stock trades at a relative value with plenty of opportunities for financial discipline to boost profits. The suggestion is to let the stock tell you when the inflection point occurs, especially at these breakout levels above $800. Alphabet (NASDAQ: GOOG )(NASDAQ: GOOGL ) is trading sideways near a new high today after an analyst downgrade. The decision is odd considering the stock is near a breakout and potential run towards $900 and possibly even $1,000. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details. 

Reports of interests in bidding for Twitter sent the stock to multi-month highs. The difference between what bidders will pay and where Twitter values the social media site suggests a deal is highly unlikely. Investors wrongly confuse exploring options with accepting any imminent bid. The good numbers from week 2 in the NFL support buying Twitter on any dips if the buyout surge deflates this week. Twitter (NYSE: TWTR ) shot up 21% on Friday to a recent high of $22.62 on news that the social media service was moving closer to being sold. The  CNBC report  suggested that Alphabet (NASDAQ: GOOG )(NASDAQ: GOOGL ) and Salesforce (NYSE: CRM ) were seriously looking at making bids. Read the full article at Seeking Alpha.  Disclosure: Long TWTR. Please review the disclaimer page for more details. 

Twitter (TWTR) is soaring 20% today on news today that the company is in informal discussions regarding a sale of the business. According to the news, Alphabet (GOOG) and s alesforce.com (CRM) are looking at a bid for the social media giant. The big question is whether a Twitter shareholder even wants a deal. After the gains the stock has a market value of $15.7 billion. A decent value for the current revenue base, but the potential remains massive. What if the NFL streaming deal and the host of shows lining up for the site starts expanding the user base. Facebook (FB) now has a market value of over $370 billion. Maybe it isn't possible to ever reach that level, but one could argue that these streaming deals with the likes of 120 Sports and Cheddar provide a compelling case for users to return to the service. If Twitter can really show that 800 million people view the site, than Twitter actually has half the user base of Facebook and no where near half the market valuat...

Twitter unleashes professional broadcasts this week with both Bloomberg shows and NFL games debuting this week. The Periscope app continues to show high viewership of top content. The recent dip in the stock provides another opportunity to own Twitter on the verge of officially becoming a media company. One of the biggest issues with Twitter (NYSE: TWTR ) is the randomness of the content posted on the site. A user logging onto the site may or may not see the interesting posts of the day. Read the full article on Seeking Alpha Disclosure: Long TWTR. Please review the disclaimer page for more details. 

Yelp reported Q1 results and provided full-year guidance that easily surpassed analyst estimates. The large stock gains by midday trading appear very sustainable based on a couple of catalysts. The recommendation is to own this stock and use any dips to load up on Yelp. As Yelp (NYSE: YELP ) headed into the  quarterly results , the market clearly had limited expectations for the company. The stock traded at all-time lows in February and ended April below the lows of 2015. Even trading above $25 today, the stock trades 50% below the 52-week highs. Read the full article on Seeking Alpha.  Disclosure: Long YELP, TWTR. Please read the disclaimer page for more details.