GOOG News
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Musk now talking about putting data centres in space! That would be a game changer.
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Musk now talking about putting data centres in space! That would be a game changer.
@Coopersale said in GOOG News:
Musk now talking about putting data centres in space! That would be a game changer.
He is obsessed with space.
TBH, more DCs in Iceland would be good enough: low energy cost, simple cooling. Much easier to get the h/w built
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It's mostly science fiction due to the costs today but it's good to push the boundaries of what is possible-after all, it's how we get there, you have to start somewhere. The next big thing will likely be deployment of humanoid robots at scale within the next 24 months and in terms of usable AI 'autonomous execution' where you set a task and it completes it without additional prompts.
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Sorry meant to post this with my comment above.
https://x.com/elonmusk/status/2000603814249079165?s=61&t=iHaQYNHaXHYa5fzY9gX_Vw -
Sorry meant to post this with my comment above.
https://x.com/elonmusk/status/2000603814249079165?s=61&t=iHaQYNHaXHYa5fzY9gX_Vw@Coopersale said in GOOG News:
Sorry meant to post this with my comment above.
https://x.com/elonmusk/status/2000603814249079165?s=61&t=iHaQYNHaXHYa5fzY9gX_VwI can see the logic in that. It'll also end the moaning from the MMGW types as it won't release any gases on earth.
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You have to hand it to Musk-he's a master marketer- it won't be long and he'll set up a real estate agency selling plots for sale on Mars-
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Interesting analyst comments on Google. You will recall we have been big supporters of the company despite it being unloved for over 2 years prior to Q2 of 2025-the market got it completely wrong by assuming that GOOG was just a search engine at risk of being crushed by anti trust laws(and OpenAI). The reality is, they will likely 'win' the AI race-their decades of investment in moon shots and employing the brightest minds is paying off in spades. They are the most profitable company in the world for now and their valuation is unstretched imo.
Alphabet (GOOG) has become the world’s second most valuable company, overtaking Apple (AAPL) for the first time since 2019, as Google’s parent company strengthens its position at the sharp end of the artificial intelligence race.
Alphabet shares climbed more than 2% on Wednesday, pushing its market capitalisation to USD 3.89 trillion. Apple’s valuation slipped to USD 3.86 trillion after its shares fell 0.8% on the day.
Wall Street analysts say Alphabet’s Gemini model is rapidly narrowing the gap with OpenAI’s ChatGPT, which remains the leading AI platform.
“Looking ahead to 2026, we expect AI to deliver further gains across the consumer business, with Gemini app downloads surpassing ChatGPT and AI Mode and Overviews driving longer user engagement,” Jefferies said.Alphabet stock has surged 64% over the past 12 months. “Supported by robust core businesses, improving cloud momentum and a stronger AI product cycle, we believe GOOGL is well placed to extend its performance,” Jefferies added.
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Alphabet shares have surged as investor confidence snaps back, driven by clear evidence that Google’s AI strategy is not only defensible, but increasingly lucrative. After months of concern that generative AI would undermine search economics, recent performance suggests the opposite is unfolding.
According to market commentators including Deepwater Asset Management, Google’s core search business has exceeded expectations as AI-driven results prompt users to ask more follow-up questions rather than fewer. That behaviour matters. More queries translate into more advertising opportunities, and Google has moved quickly to place ads both below and within AI-generated responses. Independent testing cited by Deepwater indicates monetisation has improved materially over the past three months, strengthening the outlook for 2026 and beyond.
The company is also pushing aggressively into what it calls agentic commerce. New features allow users to complete checkout directly inside AI Mode, supported by fresh ad formats such as Direct Offers. A partnership with Walmart signals that Google is serious about capturing transaction-level value, not just referral traffic, a shift that could meaningfully lift revenue per user over time.
On the competitive front, Google’s Gemini models have gained traction at speed. Some analysts argue Gemini 3 now rivals, and in certain tasks surpasses, OpenAI’s GPT, a view that has reshaped perceptions of the AI landscape. Momentum was further boosted by reports that Apple has selected Gemini to power upcoming Siri upgrades, displacing rival models.
Alphabet shares are now up roughly 80% over six months, placing the stock among the top performers in the Nasdaq 100. The rally reflects a simple recalibration: Google is no longer seen as an AI casualty, but as a credible AI winner that knows how to monetise at scale.
GOOG are expected to report their Q4 and biggest ever earnings on 4 Feb, exceeding $111B revenue (Q) and over $400B annually. A formidable operator with very deep expertise and competence across all things 'tech'. It's quite incredible to think, a company of this scale still growing at high double digit rates.
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Alphabet report their Q4 earnings tonight after the close. I expect a very strong showing. Close to $115B revenue and around $2.70 eps. All eyes on GCP (Google cloud platform) and YouTube , ad dollars etc. It will be interesting to see if they MTM their Space X holding. I also expect Sundar to talk about how constrained they are and give updates on their TPU/custom Asics solutions plus RPO backlog.
Space X ran a funding round which closed mid Dec, valuing the company at $800B. GOOG last revalued their holding in July at a $420B valuation. We don't know how much they will recognised but it's between $1 and $2 EPS. If you see a headline of $3.50+ you know they revalued their holding.
GOOG purchased 7% of space X for $1B and if the IPO numbers are true, today that holding is worth $105B although they won't recognise that yet(IPO hasnt happened). Nice investment all the same.
Waymo is now worth $120B but as it's a wholly owned subsidiary, there is no MTM as it's operations are simply consolidated the same way every other operation is.
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Alphabet report their Q4 earnings tonight after the close. I expect a very strong showing. Close to $115B revenue and around $2.70 eps. All eyes on GCP (Google cloud platform) and YouTube , ad dollars etc. It will be interesting to see if they MTM their Space X holding. I also expect Sundar to talk about how constrained they are and give updates on their TPU/custom Asics solutions plus RPO backlog.
Space X ran a funding round which closed mid Dec, valuing the company at $800B. GOOG last revalued their holding in July at a $420B valuation. We don't know how much they will recognised but it's between $1 and $2 EPS. If you see a headline of $3.50+ you know they revalued their holding.
GOOG purchased 7% of space X for $1B and if the IPO numbers are true, today that holding is worth $105B although they won't recognise that yet(IPO hasnt happened). Nice investment all the same.
Waymo is now worth $120B but as it's a wholly owned subsidiary, there is no MTM as it's operations are simply consolidated the same way every other operation is.
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Mark to Market (revalue)
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GOOG surpass my earnings 2.83. They didn’t revalue space x. 35 billion net income . Will spend 180b on capex. That’s big. But what we all need to understand, they sold the capacity. Just like msft. It’s an iron clad contractual ‘binding UN resolution’ tropic thunder’ type deal. Good news to reverse the red. Cloud up 48%. More tomorrow but a great result.
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A brilliant result with +30% earnings from-a company this size can print gains like this. The big take away is tehehuge Capex spending-and where is this money going(who gets most of it?).
I trust the CEOs and Sundar is best placed over Dave on the internet insofar as where's a good place to be investing GOOG cash. Again he said on the call-they are constrained and they are making a lot of money from AI.
What we saw today were the extreme PE stocks, Palantir, APP, AMD get a good kicking and they dragged everything else down with it-and after hours the quality came back hard. And what you find is any stocks that have risen very fast will also fall very fast in these scenarios (Parabolic effect) but quality, as I said comes back. the dross does not!
There is a lot of noise/FUD around capital spending on GPUs etc and I have to say it's more an opportunity than a risk. A lot push/pull going on, media influence and weak hands. As always patience and staying the course.
Chief Financial Officer (CFO)
CapEx guidance (most important takeaway)
2026 capital expenditure expected at $175bn–$185bn, a sharp step-up.
Spend will be heavily front-loaded into:
Data centres
Custom silicon
AI compute and networking infrastructure
Cost discipline & margins
CFO acknowledged CapEx intensity but stressed:
Operating margins remain structurally stable (~32%)
AI infrastructure investments are already driving Cloud profitabilityBalance sheet
Highlighted $24.8bn in net debt issuance in late 2025 as deliberate liquidity positioning ahead of peak investment years.
Dividend maintained at $0.21 per share, signalling confidence despite elevated CapEx.
Bottom Line
Alphabet is spending aggressively, especially on AI infrastructure.
Management is not pretending CapEx will normalise soon — 2026 is a heavy year by design.
The tone from both CEO and CFO was confident, almost blunt:
short-term cash intensity is the price of long-term dominance.
Elevated CapEx
Stable margins
Cloud and AI doing the heavy lifting on incremental returns -
Of the $180B 2026 Capex, $110B will do towards racks scale build out, split roughly 50/50 GooG/GCP. I would estimate the following recipients of this cash pile. The clear winners being NVDA/AVGO
