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....

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. 

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. 

  Apple trades at a premium valuation in the tech sector, but Alphabet is forecasted to far exceed the growth rates of Apple. Alphabet has the potential to out-innovate Apple in the key AV and AR/VR device segments, where Apple has the bigger hype. Due to innovation dynamics, growth, and valuation, Alphabet is poised to rally in a bull market while Apple could collapse in further market weakness rewarding a short position. The pair trade pays off because the opposite investment should remain flat in both scenarios. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   One of the better pair trades to execute right now is going long  Alphabet  ( NASDAQ: GOOG ) ( NASDAQ: GOOGL ) and short  Apple  ( NASDAQ: AAPL ). Both companies fall into the FAANG group of  giant tech stocks out of favor in the current market, but Apple remains far too beloved in comparison to Alphabet. Not to ment...

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.   

In the span of a couple of months, Apple (AAPL) has gone from the first Trillion dollar company to the fourth largest in the US. Amazingly, Microsoft (MSFT) has taken the lead over Amazon (AMZN) and Alphabet (GOOGL) .

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. 

Apple apparently obtained a large hike to the fees Google pay as the default search browser on Apple products. Google has recently complained about the rising TAC. The near pure profit search revenues should boost FY19 EPS targets towards $14.50. One doesn't have to look very hard to make a   bullish thesis   on   Apple   ( AAPL ) based on their growth in the Services division. The shocking news of the last week is that a portion of the revenue base is set for a major boost thanks to   Google   ( GOOG ,   GOOGL ). These high-margin revenues might provide a bigger boost to the bottom line than the new iPhones. Read the full article on Seeking Alpha.  Disclosure: Long AAPL. Please review the disclaimer page for more details.   

AT&T launched their rebranded digital ad business. Xandr is only estimated at 3% of the total revenue base. Any success of Xandr provides upside to my previous $40 base case target. The business is off to a troubling start with AppNexus CEO leaving. Last week,   AT&T   ( T ) ushered in the aggressive move into advertising. The wireless giant hopes to more effectively compete in the advertising sector against the tech giants by collecting more data from customers via various video and wireless connections. Unfortunately, the   newly created Xandr   is more likely to resemble the failure of Oath from   Verizon Communications ( VZ ). Read the full article on Seeking Alpha.  Disclosure: Long T. Please read the disclaimer page for more details.   

CEO Jack Dorsey testified in Washington D.C. alongside Facebook COO Sheryl Sandberg. One day Twitter will have a market value that matches the influence of the platform. Revenue estimates and digital ad forecasts have missed the turnaround at the social platform. As the social networking sites   appeared in Washington D.C.   to testify in front of the Senate Intelligence Committee, one noticeable distinguish occurred.   Twitter   ( TWTR ) leader Jack Dorsey became the center focus of the discussions with Congress including an additional committee meeting showcasing the power of Twitter even in comparison to   Facebook   ( FB ) and   Alphabet   ( GOOG ,   GOOGL ). Read the full article on Seeking Alpha.  Disclosure: Long TWTR. 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. 

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.

Baidu easily surpassed Q1 estimates as the Chinese Internet search giant grew revenues over 30%. The company continues heavily spending on Transaction Services and video content. The stock remains an incredible value in comparison to other Internet giants even despite the heavy spending that holds back profit growth. Despite some better views of the Chinese economy and solid results from  Baidu (NASDAQ: BIDU ) , the stock hasn't made a lot of traction since the release of Q4 results at the end of February. Ending last week below $200, the stock still trades far below the levels reached all the way in early 2014.  Read the full article on Seeking Alpha.   Disclosure: Long BIDU. Please read the disclaimer page for more details.

Alphabet reported Q1 results that highly disappointed Wall Street. The Internet search giant generated amazing revenue growth and operating margins considering the currency headwinds. The recommendation is to own the stock on any big dips due to some hidden costs that sunk the quarterly results. After the close Thursday, Alphabet (NASDAQ: GOOG ) (NASDAQ: GOOGL ) sank as the company widely missed analyst targets on the top and bottom line. Looking at the numbers though, some hidden costs appear to be impacting the numbers without the attention of the market. Read the full article on Seeking Alpha.   Disclosure: No positions mentioned. Please read the disclaimer page for more details.