Getty Images While I haven't initiated coverage on Alphabet ( GOOGL ) previously, I find the company leading the AI revolution. Quite frankly, it's a tech behemoth. Now, it's not only a significant player in the cloud computing space. In my opinion, it remains at the forefront of search engines too. And I also love its stake in the robotaxi pioneer Waymo. Yes, Alphabet remains exposed to multi-yea...
Getty Images While I haven't initiated coverage on Alphabet ( GOOGL ) previously, I find the company leading the AI revolution. Quite frankly, it's a tech behemoth. Now, it's not only a significant player in the cloud computing space. In my opinion, it remains at the forefront of search engines too. And I also love its stake in the robotaxi pioneer Waymo. Yes, Alphabet remains exposed to multi-year tailwinds in my opinion. Just a week ago, Alphabet announced raising $80 billion to fund its AI endeavors . And, personally, I believe this is significant. Quite frankly, it tells me that Google seeks to secure its market share in the years to come. And with stellar earnings performance highlighting consistency, I don't see any structural concerns as to why the company couldn't achieve this. So, I initiate my coverage on the Mag 7 name here. And I rate it as a Buy. Here's why. Sometimes There's No Point to Overthink Yes. I am in the camp that sometimes there's no point in overthinking. What do I mean? One of the largest companies in the world is in this position for a reason. And it's much easier to trust management that performed well for years rather than consider a stake in a much smaller names that also carry a significant execution risk in my opinion. But, of course, that's not always guaranteed. And it can go in different ways. And, more importantly, this argument wins when Alphabet is also trading at undervalued levels in my opinion. But more about it you can find in the valuation section. GOOGL: Earnings History (Seeking Alpha) Now, Google is a consistent performer. Well, that's clearly seen by its historical earnings where you can only find a single miss on revenue estimates since 2024. Personally, I believe that such consistency in performance remains something that deserves a premium multiple. Alphabet delivered its earnings at the very end of April. And, boy, was it a good one! I truly liked it a lot. And it's not surprising to me that GOOGL rallied 10% over t...
Richard Drury/DigitalVision via Getty Images Summary I gave a buy rating to Cellebrite DI Ltd. ( CLBT ) previously, with my key thesis being that the federal demand issue looked more like a timing problem than a structural slowdown and that the platform story was getting stronger. Six months since my last update, I am reiterating my buy rating. Fundamentals look stronger than before: FedRAMP High ...
Richard Drury/DigitalVision via Getty Images Summary I gave a buy rating to Cellebrite DI Ltd. ( CLBT ) previously, with my key thesis being that the federal demand issue looked more like a timing problem than a structural slowdown and that the platform story was getting stronger. Six months since my last update, I am reiterating my buy rating. Fundamentals look stronger than before: FedRAMP High has been achieved, Inseyets conversions are approaching 60%, growth products are scaling, and the AI story is progressing from concept toward product reality. Growth Is Improving CLBT continues to show that demand is solid, which further eases the prior concern about growth. The guide for Q2 2026 also gives me more confidence. Specifically, management guided for Q2 ARR of $510 million to $513 million, implying 22% to 23% ARR growth and a step-up in net new ARR vs. Q1 . If that plays out as guided, it would support the view that CLBT is reaccelerating after the softer federal period. On that point about federal demand, things also appear to be shaping up. Management said in the latest earnings call that the US federal business is beginning to accelerate and that CLBT Government Cloud achieved FedRAMP High Authorization, with the DOJ serving as the authorizing agency. In simpler terms, the major friction point for broader government cloud adoption is now out of the way, and CLBT can finally ramp up adoption. The main pushback is that the FY2026 guide was not raised. Management still expects FY26 ARR of $567 million to $573 million, revenue of $565 million to $571 million, and adj. EBITDA of $149 million to $155 million. My initial question is: why was there no raise if federal adoption is now set up better? It could be that management is sandbagging and setting up a beat-and-raise situation, or it could be that other parts of the business are offsetting the adoption ramp. I am giving management the benefit of the doubt here, but the way I see it, the growth outlook has certai...
SpaceX ’s long-awaited initial public offering triggered a selloff across rocket, satellite and space-linked companies Friday. Since news of the offering first emerged in early December, smaller space-related stocks had rallied on the back of it. But that came to a halt as the IPO shifted attention toward Elon Musk ‘s $1.8 trillion company and underscored the flood of investment needed to built ou...
SpaceX ’s long-awaited initial public offering triggered a selloff across rocket, satellite and space-linked companies Friday. Since news of the offering first emerged in early December, smaller space-related stocks had rallied on the back of it. But that came to a halt as the IPO shifted attention toward Elon Musk ‘s $1.8 trillion company and underscored the flood of investment needed to built out the industry. Shares of space-transportation company, Rocket Lab Corp. , declined as much as 10%. Redwire Corp. shares slumped 11%. Satellite broadband company AST SpaceMobile Inc. slid 11% and Firefly Aerospace Inc. , the rocket and spacecraft maker, sunk as much as 14%. Intuitive Machines Inc. fell 12% and Virgin Galactic Holdings Inc. , the space travel company, shares plunged as much as 27%. “SpaceX is just going to take all of the oxygen out of the space and absorb a lot of dollars and interest,” said Joe Gilbert , portfolio manager at Integrity Asset Management. “We believe investor positioning ahead of this deal has created weakness for some of the other high-flying momentum stocks as well.” Procure Space ETF , a fund with a market value of about $1 billion that had gained about 40% so far this year, slide 6%. And a Bank of America Corp . basket of space stocks declined 5%. The movements underscore how speculative the space business remains, with SpaceX securing a market valuation that’s some 100 times larger than its annual revenue, even as it continues to lose money and faces fierce competition in the artificial intelligence business. While individual investors snapped up companies like Rocket Lab and Redwire in recent months, Vanda Research raised the possibility that some of those positions may have just been placeholders until they could shift into SpaceX stock instead. “These stocks got caught in the enthusiasm,” said Steve Sosnick , chief strategist at Interactive Brokers. “It is reasonable to think that some of traders’ attention and dollars are gravitating...