What Happened? Shares of enterprise software giant Oracle (NYSE:ORCL) fell 4.5% in the afternoon session after reports revealed that a critical $10 billion funding deal with Blue Owl Capital for a Michigan data center stalled. While Oracle disputed the narrative, claiming they selected a different equity partner, the reported reason for Blue Owl's exit sparked widespread anxiety: concerns over Ora...
What Happened? Shares of enterprise software giant Oracle (NYSE:ORCL) fell 4.5% in the afternoon session after reports revealed that a critical $10 billion funding deal with Blue Owl Capital for a Michigan data center stalled. While Oracle disputed the narrative, claiming they selected a different equity partner, the reported reason for Blue Owl's exit sparked widespread anxiety: concerns over Oracle's ballooning debt and "unfavorable" terms. This specific deal failure illuminated a massive structural risk: Oracle was aggressively leveraging its balance sheet to fund the AI race. Investors grew increasingly concerned that hyperscalers relied more on risky private equity structures to build infrastructure rather than using their own capital. The market fear was that Oracle overextended itself financially to chase OpenAI's demands. The stock market overreacts to news, and big price drops can present good opportunties to buy high-quality stocks. Is now the time to buy Oracle? Access our full analysis report here. What Is The Market Telling Us Oracle’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock dropped 5.1% on the news that the company's stock continued to fall from the previous session as investors digested earnings results that raised concerns about heavy spending on Artificial Intelligence (AI) infrastructure. The drop extended a significant decline from the prior trading day when the stock plunged after the company reported mixed financial results. While Oracle beat earnings per share estimates, its cloud revenue and a key metric for future growth, remaining performance obligation (RPO), fell short of Wall Street's expectations. Compounding investor worries, the company announced a much more aggressi...
What Happened? Shares of fabless chip and software maker Broadcom (NASDAQ:AVGO) fell 5.4% in the afternoon session after it continued a multi-day slide as management warned that its fast-growing artificial intelligence (AI) business would negatively impact gross profit margins. The drop extended a steep decline that began after the company's recent earnings update. During the update, management in...
What Happened? Shares of fabless chip and software maker Broadcom (NASDAQ:AVGO) fell 5.4% in the afternoon session after it continued a multi-day slide as management warned that its fast-growing artificial intelligence (AI) business would negatively impact gross profit margins. The drop extended a steep decline that began after the company's recent earnings update. During the update, management indicated that increasing sales of custom AI processors, which have lower margins, would reduce the company's overall gross margins in the upcoming quarter. This guidance alarmed investors, who feared that the profitable AI surge might not be as lucrative as Broadcom's traditional software business. The continued selling pressure capped a multi-day slide that was reportedly the stock's worst in several years. The stock market overreacts to news, and big price drops can present good opportunties to buy high-quality stocks. Is now the time to buy Broadcom? Access our full analysis report here. What Is The Market Telling Us Broadcom’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock dropped 10.7% as investors locked in some profits amid margin anxiety as the company reported a top-and-bottom-line earnings beat. While revenue jumped 28% and AI sales surged 74%, management guided for gross margins to fall by ~100 basis points sequentially. This fueled a bearish view: the company's booming AI hardware business is structurally less profitable than its legacy software segments, causing "margin dilution" as it grows. The sell-off was deepened by Oracle's contagion. Earlier in the week, Oracle spooked the market with massive capital expenditure hikes, signaling that AI infrastructure is becoming exorbitantly expensive to buil...
Alphabet Inc. (GOOG) closed at $298.06 in the latest trading session, marking a -3.14% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.16%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%. Shares of the company witnessed a gain of 7.99% over the previous month, beating the performance of the Computer and Technology sector wit...
Alphabet Inc. (GOOG) closed at $298.06 in the latest trading session, marking a -3.14% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.16%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%. Shares of the company witnessed a gain of 7.99% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1%, and the S&P 500's gain of 1.03%. The investment community will be closely monitoring the performance of Alphabet Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.58, reflecting a 20% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $94.26 billion, up 15.49% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.52 per share and a revenue of $340.26 billion, signifying shifts of +30.85% and +15.3%, respectively, from the last year. It is also important to note the recent changes to analyst estimates for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. Alphabet Inc. currently has a Zacks Rank of #3 (Hold). With respect to valuation, Alphabet Inc. is currently bein...
Platinum Asset Management, an investment management company, released its Q3 2025 investor letter for “Platinum International Technology Fund”. A copy of the letter can be downloaded here. The fund was up 6% in the third quarter, driven by strong performance from AI-oriented holdings. The portfolio holds around 30% of its stake in AI infrastructure stocks and is positioned to benefit from signific...
Platinum Asset Management, an investment management company, released its Q3 2025 investor letter for “Platinum International Technology Fund”. A copy of the letter can be downloaded here. The fund was up 6% in the third quarter, driven by strong performance from AI-oriented holdings. The portfolio holds around 30% of its stake in AI infrastructure stocks and is positioned to benefit from significant investment in the AI build-out. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025. In its third-quarter 2025 investor letter, Platinum International Technology Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was 5.03%, and its shares gained 61.84% over the last 52 weeks. On December 16, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $307.73 per share, with a market capitalization of $3.715 billion. Platinum International Technology Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter: "To date, the growth in OpenAI user engagement has come at the expense of Alphabet Inc. (NASDAQ:GOOG). Whilst Google Search still holds the largest search engine share, their share of total search queries is less than 70% (see Figure 3). We think this trend will continue as ChatGPT improves and the traditional search experience continues to degrade as the open internet is further inundated with low quality generative AI content and advertising. We believe both Alphabet and Meta are using the right strategies to defend their franchises. Both are keeping up with OpenAI on model performance (helped by advantages in both datasets and infrastructure). They are also leveraging their existing products for distribution. Alphabet is pushing Gemini into Android, Chrome and ...
GreensKeeper Asset Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Value Fund has ended the quarter with a +4.0% gain, taking the YTD return to +0.2% net of fees and expenses. The US dollar continued to pose a challenge, negatively impacting performance by -3.7% so far this year. The year’s market rally...
GreensKeeper Asset Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Value Fund has ended the quarter with a +4.0% gain, taking the YTD return to +0.2% net of fees and expenses. The US dollar continued to pose a challenge, negatively impacting performance by -3.7% so far this year. The year’s market rally was primarily led by AI, crypto, and speculation. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025. In its third-quarter 2025 investor letter, GreensKeeper Asset Management highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was 5.03%, and its shares gained 61.84% over the last 52 weeks. On December 16, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $307.73 per share, with a market capitalization of $3.715 billion. GreensKeeper Asset Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:
In the latest close session, Alphabet Inc. (GOOG) was up +1.02% at $321.00. The stock outperformed the S&P 500, which registered a daily gain of 0.68%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.33%. Shares of the company witnessed a gain of 8.92% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.45%, and the S&P 500...
In the latest close session, Alphabet Inc. (GOOG) was up +1.02% at $321.00. The stock outperformed the S&P 500, which registered a daily gain of 0.68%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.33%. Shares of the company witnessed a gain of 8.92% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.45%, and the S&P 500's gain of 1.8%. Investors will be eagerly watching for the performance of Alphabet Inc. in its upcoming earnings disclosure. In that report, analysts expect Alphabet Inc. to post earnings of $2.58 per share. This would mark year-over-year growth of 20%. Meanwhile, the latest consensus estimate predicts the revenue to be $94.26 billion, indicating a 15.49% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.52 per share and revenue of $340.26 billion, indicating changes of +30.85% and +15.3%, respectively, compared to the previous year. It is also important to note the recent changes to analyst estimates for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.54% higher. Alphabet Inc. is currently sporting a Zacks Rank of #3 (Hold). Investors should also note Alphabet Inc.'s current valuation metrics, ...
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to ha...
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model . How far off is Broadcom Inc. ( NASDAQ:AVGO ) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! The US$411 analyst price target for AVGO is 35% more than our estimate of fair value Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate ...