Alphabet shares have fallen 15% from their May highs as investors question the company's position in artificial intelligence, but MoffettNathanson analyst Michael Nathanson argues Wall Street may be focusing too heavily on AI model rankings rather than Alphabet's broader cloud opportunity. Recent departures from Google DeepMind and delays to the Gemini 3.5 Pro model have raised concerns about Alphabet's ability to stay at the forefront of AI. Nathanson, however, believes Alphabet is pursuing a different strategy from AI-focused rivals such as OpenAI and Anthropic, with Google Cloud potentially representing a more important driver of long-term value. MoffettNathanson projects Google Cloud revenue could grow at a 48% compound annual growth rate through 2030, as businesses increasingly adopt
$Alphabet(GOOG)$ The House of Representatives passed a bill by a wide margin establishing rules for data centers, requiring corporations to cover 100% of energy costs so citizens pay nothing. The bill also includes additional federal compliance rules and regulations. The Senate votes next. Google should be well positioned.
$Microsoft(MSFT)$ At least it's a very low volume sell-off, so I'm holding my ground. This feels temporary. But the rate hike is frustrating — in my view, the economy and the stock market just didn't need this right now.
$Meta Platforms, Inc.(META)$ I sold calls too soon. Anyway, great run, well done to the bulls. The bears who were shorting this in the 500s had to be ignoring the growth here, especially with the stock under 20 PE. Same type of thinking seems to be sitting on $Alphabet(GOOG)$ right now - around 16 PE and it still can't lift its head up. Should run soon.
$Microsoft(MSFT)$ The leading cybersecurity companies in 2026 are Microsoft, Palo Alto Networks, CrowdStrike, Cisco, and Fortinet. The recent paranoia will only make MSFT a bigger leader, and a more desirable stock.
$Alphabet(GOOG)$ had a strong day, adding more than $125 billion in market cap, its biggest single-day gain in over a month. The Exposure Forecast tool showed moderate confidence at the low of the day that a grind higher could happen.
$Alphabet(GOOG)$ On AI safety, Google has a strong lineup across Demis Hassabis, Google Brain and DeepMind, along with Pichai, Brin, Page, and Wiz on the cybersecurity side. That is quite a stacked team at Google.
$Alphabet(GOOGL)$ $Alphabet(GOOG)$ What stands out here is capex tripling with no end in sight on AI spending. That is the part worth paying attention to.