Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

Alphabet Inc.

Key Points
Apple has reportedly approached Alphabet about using Google Gemini artificial intelligence (AI) to improve its Siri voice assistant.
Apple had previously announced it would use OpenAI and ChatGPT for this purpose.
Engineering problems have slowed down Apple's AI efforts with iPhone.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved higher today -- and well, yes, pretty much everyone is moving higher after Federal Reserve Chairman Powell hinted at the Federal Reserve conference in Jackson Hole, Wyoming, that he's considering lowering interest rates this year -- but Alphabet in particular went on a 3.7% romp that's more than twice as big as today's gain on the Nasdaq Composite (NASDAQINDEX: ^IXIC) generally.
And why?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Because according to Bloomberg, Apple (NASDAQ: AAPL) is getting ready to hire Alphabet's Google to redesign Siri and give Apple some real artificial intelligence (AI).
Alphabet and Apple: Better together?
As Bloomberg tells it, the impetus for this move came from Apple, which has approached Alphabet about getting the latter's Gemini AI team to "revamp the Siri voice assistant."
Apple, you will recall, was supposed to roll out a much smarter Siri last year, to pair with a new generation of AI-enabled iPhone smartphones. "Engineering setbacks" cropped up, however, and that hasn't happened yet.
In that former project, OpenAI and ChatGPT were supposed to be the brains behind a new and improved Siri. It's not clear whether that part of the plan is still active. But news that Apple is now talking to Alphabet suggests Apple could -- at the very least -- be open to the possibility of switching horses midstream, and giving its business to Google rather than to OpenAI.
Is this good news for Alphabet stock?
What's in this for Alphabet, and is it wise for the company to partner with the archrival of its own Android-software smartphones?
When you consider that Apple still holds dominant smartphone market share worldwide (27.5%), while Google sells few phones, and much of Android's success benefits a different smartphone maker, Samsung (21.6%), Alphabet has little to lose through this tie-up with Apple.
It could have billions in license fees to gain.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*
Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 18, 2025
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Alphabet Stock Popped Friday

NVIDIA Corporation NVDA is all set to report its much-awaited fiscal 2026 second-quarter (ended July 30) earnings after the closing bell on Aug. 27. This announcement could be pivotal for NVIDIA, particularly following its recent agreement with the U.S. government to re-enter the Chinese market and amid record-high data center spending. Therefore, it is important to explore the strategic actions investors can consider before the upcoming earnings report.
NVIDIA Gears Up for Explosive Q2 Results
It’s been nearly three months since NVIDIA reported fiscal first-quarter results. Its revenues of $44.1 billion were up 69% year over year. A similar performance is expected in the fiscal second quarter as well, with revenues projected at $46.03 billion, up 53.2% year over year.
Furthermore, NVIDIA’s earnings per share (EPS) are expected to come in at $1.00 compared to $0.68 in the same quarter a year ago, representing a 47.1% year-over-year increase. NVIDIA’s trailing four-quarter earnings surprise, on average, is a positive 3.9%, which suggests that the stock may deliver second-quarter growth.
Image Source: Zacks Investment Research
Why NVIDIA Could Post Solid Q2 Results?
NVIDIA’s new-generation Blackwell Ultra graphics processing units (GPUs) architecture is experiencing significant demand because it can execute artificial intelligence (AI) tasks 50 times quicker than the previous Hopper architecture. The shipping of these Blackwell Ultra GB300 GPUs started in large quantities during the latter half of the year. Since the fiscal second quarter includes July, there is a strong possibility that the sales of Blackwell Ultra GB300 GPU will enhance NVIDIA’s revenues and profits.
In the fiscal first quarter, NVIDIA lost $2.5 billion in sales and incurred a $4.5 billion charge due to the U.S. government restrictions on selling its H20 chips to China. However, in April, the Trump administration permitted NVIDIA to export its H20 chips to China, stipulating that the company must share 15% of its revenues from the sales of this chip with the government. Now, with NVIDIA expected to sell chips worth $8 billion to China in the fiscal second quarter, there is a strong possibility that removing the export restrictions will assist the company in recovering some of the revenues lost in the previous quarter and enhance its performance in the reporting quarter.
Buy, Hold, or Sell NVIDIA Stock Ahead of Q2 Earnings?
With NVIDIA’s H20 chips heading to China, and the demand for Blackwell chips remaining strong, an upbeat fiscal second-quarter results are on the cards, typically driving its stock price higher. Additionally, the future looks promising for NVIDIA as the company is set to benefit from ongoing growth in data center capital expenditures (capex). Its GPUs, which power data centers, are in demand as customers plan to increase their capex to establish more AI data centers to meet rising computing capacity needs.
Alphabet Inc. GOOGL and Meta Platforms, Inc. META have increased their 2025 data center capex forecast from $75 billion to $85 billion, and from $64 billion to $66 billion, respectively. Amazon.com, Inc. AMZN anticipates that its capex for data centers in 2025 will reach a record $118 billion, while Microsoft Corporation’s MSFT capex has already reached $88 billion for the fiscal year 2025, which concluded on June 30.
Therefore, it’s prudent for NVIDIA stakeholders to retain their stock for potential long-term benefits. New investors should wait until NVIDIA’s fiscal second-quarter results either surpass or align with analysts’ forecasts for the stock to rise further.
Given that NVIDIA’s top customers are boosting their capex in data centers, it’s unlikely that the fiscal second-quarter results will underperform expectations, presenting a timely opportunity for new investors to purchase the stock.
For now, NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NVIDIA to Post Q2 Earnings: Buy, Hold, or Take Profits?

Reddit’s RDDT vast repository of authentic conversations is a key catalyst to its monetization strategy, with data licensing emerging as a high-margin growth driver. The 20-year archive has positioned Reddit as the most cited domain for AI training, creating a durable foundation for data licensing, which boosted second-quarter 2025 other revenues by 24% year over year to $34.8 million. The Zacks Consensus Estimate for third-quarter other revenues is pegged at $34.9 million, implying continued traction.
According to Grand View Research, the global AI datasets and licensing market was estimated at $381.8 million in 2024 and is expected to reach $1.59 billion by 2030, reflecting a CAGR of 26.8%. With AI developers seeking large, high-quality conversational datasets, Reddit’s archive of user-generated content is positioned as a differentiated and scalable resource for growth.
Expanding engagement through features like Reddit Answers, which reached 6 million weekly users as of the second quarter of 2025 and machine translation across 23 languages, both of which are broadening participation and enriching the platform’s dataset. Daily Active Uniques (DAUq) grew 21% year over year to 110.4 million, while Weekly Active Uniques (WAUq) advanced 22% to 416.4 million in the recently reported quarter. The Zacks Consensus Estimate for third-quarter DAUq is pegged at 113.8 million, while the consensus mark for WAUq is pegged at 430.9 million, suggesting sustained momentum.
By anchoring its licensing strategy to a growing base of authentic conversations, Reddit is establishing a self-reinforcing model. Stronger engagement expands the archive, which deepens its utility for AI training and opens incremental avenues for revenue appreciation. This flywheel effect, alongside supportive industry trends, signals the potential for durable growth in data licensing over time.
RDDT Faces Competition in Data Licensing
Reddit faces significant competition from larger technology platforms, particularly Meta Platforms META and Alphabet GOOGL. Both Meta Platforms and Alphabet generate massive volumes of user-generated content across Facebook, Instagram and Google’s services, giving them substantial data repositories for AI training. Meta’s vast social graph and Alphabet’s search and YouTube datasets provide scale advantages that rival Reddit’s value proposition.
However, Reddit’s differentiated archive of authentic, community-driven conversations remains unique in structure and context, offering a specialized dataset not easily replicated. Despite Meta Platforms and Alphabet’s dominance, Reddit’s content depth continues to serve as a distinct advantage in data licensing.
Reddit’s Share Price Performance, Valuation and Estimates
Reddit shares have jumped 33.8% year to date, while the broader Zacks Computer & Technology sector and the Internet Software industry increased 10.8% and 17.6%, respectively.
RDDT's YTD Price Performance
Image Source: Zacks Investment Research
Reddit stock is trading at a premium, with a forward 12-month Price/Sales of 16.51X compared with the industry’s 5.55X. RDDT has a Value Score of F.
RDDT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at 49 cents per share, up by 17 cents over the past 30 days, implying a significant improvement from the year-ago quarter’s earnings of 16 cents per share.
Reddit Inc. Price and Consensus
Reddit currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Reddit's Data Licensing Momentum Drive More Upside in the Stock?

The AI revolution has reshaped the cloud computing landscape, creating unprecedented opportunities for technology giants. Two prominent players, Oracle Corporation ORCL and Alphabet Inc. GOOGL, have emerged as compelling investment options for those seeking exposure to the AI-driven cloud infrastructure boom. Both companies have pivoted aggressively toward AI integration, with Oracle transforming its traditional database business into a cloud-first AI powerhouse, while Alphabet leverages its search dominance and vast data resources to build comprehensive AI solutions across multiple platforms.
The convergence of cloud computing and artificial intelligence has intensified competition between established technology leaders, making their comparison particularly relevant for investors seeking optimal positioning in this transformative sector. Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for ORCL Stock
Oracle's transformation from a traditional database company to an AI cloud infrastructure leader has exceeded investor expectations significantly. The company's strategic relationship with ByteDance has triggered the rise of Johor, Malaysia as the world's second largest AI hub, with expansion already underway across multiple countries. Oracle recently revealed a cloud deal that would add more than $30 billion annually, with revenues expected to start hitting in the 2028 fiscal year, demonstrating remarkable ability to secure massive long-term contracts in the competitive AI space.
The Zacks consensus estimate for fiscal 2026 earnings is pegged at is pegged at $6.73 per share, unchanged over the past 30 days.
Oracle's positioning in AI infrastructure has proven exceptionally successful. Larry Ellison recently forecasted over $130 billion of contracts to be booked in the next 12 months, indicating unprecedented demand for Oracle's cloud services. The company's unique approach combines traditional hyperscaler attributes with AI-native capabilities, particularly evident in major partnerships. Oracle expanded its partnership with Google Cloud to offer customers access to Google's most advanced AI models, starting with Gemini 2.5, via Oracle Cloud Infrastructure Generative AI service, creating powerful synergies.
The company's aggressive global expansion strategy demonstrates a serious commitment to AI infrastructure dominance. Oracle plans to invest $2 billion over five years in Germany and $1 billion in the Netherlands to meet growing demand for AI and cloud infrastructure. These investments will significantly expand Oracle Cloud Infrastructure's footprint and AI capacity in key European markets, positioning the company for sustained growth.
However, Oracle faces notable challenges. The company recently cut jobs in its cloud infrastructure unit amid heavy AI spending, suggesting cost pressures despite strong revenue growth. Oracle's smaller scale compared to hyperscaler competitors may limit pricing competitiveness and capacity in certain market segments, potentially constraining long-term market share expansion.
Oracle Corporation Price and Consensus
The Case for GOOGL Stock
Alphabet's position in the AI cloud market represents a comprehensive ecosystem advantage that few competitors can match effectively. CEO Sundar Pichai's claim that nearly all Gen AI unicorns use Google Cloud underscores Google's emergence as the foundational infrastructure layer for the generative AI economy. Google Cloud reported revenues of $13.62 billion for the second quarter, representing 32% growth year over year, demonstrating sustained momentum in the cloud segment while maintaining strong profitability margins.
Alphabet's AI innovation pipeline continues to accelerate across multiple fronts simultaneously. At Google Cloud Next 2025, the company announced Ironwood, its 7th-generation TPU built for inference, offering five times more peak compute capacity and six times the high-bandwidth memory capacity compared to prior generations. The company processed more than 980 trillion monthly tokens across its surfaces, doubling from 480 trillion announced at I/O in May, indicating explosive growth in AI usage and adoption.
The breadth of Alphabet's AI implementation provides multiple revenue streams and competitive moats that strengthen over time. The Gemini App now has more than 450 million monthly active users, with daily requests growing over 50% from the first quarter. Google's integration of AI across Search, YouTube, and Workspace creates a self-reinforcing ecosystem that drives user engagement and advertiser value while defending market position.
Alphabet's financial commitment to AI infrastructure is substantial and strategically focused. The company increased capital expenditures forecast for 2025 to $85 billion, up $10 billion from February, due to strong and growing demand for Cloud products and services, positioning Google Cloud to capitalize on continued AI infrastructure buildout while maintaining technological leadership.
The Zacks consensus estimate for 2025 earnings is pegged at is pegged at $10 per share, up 4.3% over the past 30 days.
Alphabet Inc. Price and Consensus
Valuation and Price Performance Comparison
Both Oracle and Alphabet trade at premium valuations reflecting AI growth prospects, though Alphabet appears more attractively priced across multiple metrics. Alphabet's P/E ratio stands at 19.29x, while Oracle appears overvalued with a value of 33.59x.
ORCL vs. GOOGL: P/E F12M Ratio
Image Source: Zacks Investment Research
Oracle's stock rallied 130% over five years with 150% total return including dividends, while Alphabet posted 176% gains without dividends, demonstrating superior price appreciation and shareholder value creation. Shares of Oracle have returned 41.8% year to date, while Alphabet has returned 7.5% in the same time frame.
ORCL Outperforms GOOGL YTD
Image Source: Zacks Investment Research
Conclusion
While both Oracle and Alphabet offer compelling AI cloud investment opportunities, Alphabet demonstrates superior positioning across multiple dimensions. Google Cloud's dominance among AI unicorns, combined with Alphabet's comprehensive AI ecosystem spanning search, advertising, and enterprise solutions, provides more diversified revenue streams and defensive moats. The company's massive scale enables sustained infrastructure investment while maintaining healthier margins than Oracle's concentrated approach. Alphabet's attractive valuation compared to Oracle's premium pricing, coupled with stronger historical returns and broader market positioning, suggests better risk-adjusted upside potential. Investors should track GOOGL stock for attractive entry points while waiting for better entry opportunities in ORCL. Both ORCL and GOOGL carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Oracle vs. Alphabet: Which AI Cloud Stock Has Better Upside Potential?

A month has gone by since the last earnings report for Alphabet (GOOGL). Shares have added about 3.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Alphabet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Alphabet Q2 Earnings & Revenues Beat Estimates, Up Y/Y
Alphabet’s second-quarter 2025 earnings of $2.31 per share beat the Zacks Consensus Estimate by 7.44% and grew 22.2% year over year.
Revenues of $96.43 billion increased 13.8% year over year (13% at constant currency). Net revenues, excluding total traffic acquisition costs (“TAC”) (the portion of revenues shared with Google’s partners and the amount paid to distribution partners and others who direct traffic to Google’s website), were $81.72 billion, which surpassed the consensus mark by 2.2%. The figure rose 14.5% year over year. TAC of $14.71 billion rose 9.8% year over year.
Google Cloud revenues surged 31.7% year over year to $13.62 billion and accounted for 14.1% of the quarter’s total revenues. The figure beat the Zacks Consensus Estimate by 4.24%.
GOOGL’s Services Ride on Search & YouTube
Google Services revenues increased 11.7% year over year to $82.54 billion and accounted for 85.6% of total revenues. The figure beat the Zacks Consensus Estimate by 3.28%.
Google advertising revenues rose 10.4% year over year to $71.34 billion and accounted for 74% of total revenues. The figure beat the consensus mark by 3%. Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing the Zacks Consensus Estimate by 3.04%. Search and other revenues accounted for 56.2% of total revenues. YouTube’s advertising revenues improved 13.1% year over year to $9.77 billion, beating the consensus mark by 2.9%.
However, Google Network revenues decreased 1.2% year over year to $7.35 billion but beat the consensus mark by 2.88%.
Google subscriptions, platforms and devices revenues, formerly known as Google Other revenues, were $11.2 billion in the second quarter, up 20.3% year over year. The figure beat the consensus mark by 4.72%.
Other Bets’ revenues were $373 million, up 2.2% year over year, and accounted for 0.4% of the second-quarter revenues. The figure missed the consensus mark by 12.16%.
GOOGL’s Operating Margin Expands Y/Y
Costs and operating expenses were $65.16 billion, up 13.7% year over year. As a percentage of revenues, the figure declined 10 basis points (bps) on a year-over-year basis to 67.6%.
The operating margin was 32.4%, which expanded 10 bps year over year.
Segment-wise, Google Services’ operating margin of 40.1% contracted 10 bps year over year. Google Cloud’s operating income was $2.83 billion compared with $1.17 billion reported in the year-ago quarter.
Other Bets reported a loss of $1.25 billion compared with a loss of $1.13 billion in the year-ago quarter.
Alphabet’s Balance Sheet Remains Strong
As of June 30, 2025, cash, cash equivalents, and marketable securities were $95.15 billion, down from $95.33 billion as of March 31, 2025.
Long-term debt was $23.61 billion as of June 30, 2025, compared with $10.89 billion as of March 31, 2025. In May 2025, GOOGL issued fixed-rate senior unsecured notes with net proceeds of $12.5 billion.
Alphabet generated $27.75 billion of cash from operations in the second quarter of 2025 compared with $36.15 billion in the first quarter of 2025. GOOGL spent $22.45 billion on capital expenditure, generating a free cash flow of $5.3 billion in the reported quarter.
Alphabet Raises Capital Expenditure Guidance
For 2025, Alphabet now expects to spend $85 billion on capital expenditures.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 5.39% due to these changes.
VGM Scores
At this time, Alphabet has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Alphabet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Is Alphabet (GOOGL) Up 3.9% Since Last Earnings Report?

C3.ai, Inc. AI stock has experienced a significant decline, declining 42.2% over the past month. In fact, AI stock fell around 24% since it released its preliminary results for its fiscal first quarter, which ended on July 31, 2025. Recent news indicates challenges for the company, including quarterly revenue falling below expectations, which has impacted investor confidence.
The current stock price is around $16.86, with a 52-week high of $45.08 and a low of $14.70. The stock has been volatile, with a weekly volatility of about 12%, higher than most U.S. stocks.
1-Month Share Price Performance
Image Source: Zacks Investment Research
A Snapshot of AI’s Q1 Preliminary Results
Revenues are now expected to be in the range of $70.2 million to $70.4 million, well below both analysts’ expectations and the company’s own guidance given in May. GAAP operating loss is estimated to be in the range of $124.7 million to $124.9 million, while non-GAAP operating loss is predicted to be between $57.7 million and $57.9 million.
C3 AI’s CEO, Thomas Siebel, admitted the quarter’s sales performance was “completely unacceptable.” Siebel pointed to the company’s reorganization and his own health challenges as the primary reasons for the weak results.
The company closed the quarter with $711.9 million in cash, cash equivalents and marketable securities, underscoring a strong liquidity position despite the wider losses.
In late July, Siebel announced his intention to step down as CEO once a successor is found, citing serious health challenges, including an autoimmune diagnosis and vision impairment. This announcement, coupled with the abrupt results miss, heightened investor anxiety about the company's leadership and near-term trajectory.
C3.ai’s Estimate Revision Trend
The Zacks Consensus Estimate for fiscal 2026 and 2027 loss per share has widened to $1.39 and 47 cents from a loss of 42 cents and 16 cents in the past 30 days, respectively. The estimated figure indicates a widened loss for fiscal 2026, as you can see below.
Image Source: Zacks Investment Research
Can C3.ai Stock Stage a Comeback?
Despite the rough preliminary first-quarter fiscal 2026 report, several underlying positives suggest that C3.ai may still be set up for a potential rebound.
First and foremost, the company boasts a robust financial cushion. As of late July 2025, C3.ai held approximately $711.9 million in cash, cash equivalents, and marketable securities, only modestly down from its April balance of $742.7 million. This sizable liquidity gives the firm a significant runway—even as it continues to operate at a non GAAP loss.
Second, management is taking serious action. The poor fiscal first quarter outcomes were openly attributed to the disruptive effects of reorganizing its sales and services functions, along with CEO Tom Siebel’s health-related absence from sales processes. However, these leadership and operational changes are now complete, with the company having installed a team of seasoned, enterprise sales executives across key roles. The restructuring brought in several industry veterans, including Rob Schilling as executive vice president and chief commercial officer and John Kitchingman as general manager for EMEA. The company also added Jeff Cosseboom as group vice president for North America East Sales and Lars Farnstrom as group vice president for the Nordics.
Third, the firm’s strategic positioning in key growth areas remains compelling. C3.ai’s ongoing expansion into diverse industries beyond its core oil and gas sector also contributes positively, with emerging traction in manufacturing, life sciences, and state and local government markets. Their AI solutions have been adopted by prominent customers such as the U.S. Air Force, Shell, SK, and the State of California, highlighting practical value and return on investment. They have introduced generative AI applications for government programs that improve constituent services and operational efficiency.
Finally, the firm's market positioning remains unique. C3.ai differentiates itself from other enterprise AI providers by offering industry-specific, prebuilt AI applications and a full-stack, low-code development platform—enabling quicker deployments across sectors like defense, healthcare, energy, and beyond. These capabilities, paired with strategic alliances—such as go to market relationships with Microsoft MSFT, Amazon’s AMZN AWS, Alphabet’s GOOGL Google Cloud, PwC, and McKinsey QuantumBlack—continue to bolster C3.ai's market reach and credibility.
In summary, even in the face of a dismal quarter, C3.ai retains several positive undercurrents: a strong cash reserve, a refreshed sales leadership structure aimed at operational stabilization, growing traction in high-value AI segments like generative and federal contracts, and optimistic investor projections suggesting meaningful upside if execution improves. The company’s success over the remainder of fiscal 2026—and its ability to reach positive free cash flow by the fiscal fourth quarter—will be pivotal in determining whether these positives can translate into a real rebound.
C3.ai Valuation
AI stock is priced at a discount relative to its industry. It has a forward 12-month price-to-sales ratio of 5.44, which is well below the industry average.
P/S (F12M)
Image Source: Zacks Investment Research
C3.ai’s Competition Landscape
C3.ai operates in a vibrant and highly competitive enterprise AI landscape, with key challengers ranging from tech behemoths to specialized AI innovators. Major cloud and AI players like Microsoft, Amazon, Google, and NVIDIA frequently appear in comparisons due to their substantial investments and robust AI platforms. Again, Palantir and DataRobot challenge C3.ai in enterprise analytics and AI solutions. Consulting and IT service providers like Accenture, Infosys, and Wipro also compete in large-scale enterprise AI deployments. Additionally, data-focused platforms such as Databricks, Snowflake, and Alteryx offer alternative machine learning and AI environments. This mix of cloud leaders, AI specialists, and IT integrators makes the competitive landscape highly dynamic.
How to Play C3.ai Stock Now?
C3.ai’s steep 42% monthly decline, wider-than-expected losses, and leadership uncertainty signal heightened risk for investors. The CEO’s pending departure, weak revenue outlook, and volatility underscore operational instability, while downward estimate revisions highlight deteriorating fundamentals. Despite a solid cash position and potential in enterprise AI, execution challenges and lack of near-term visibility outweigh the positives. With a Zacks Rank #4 (Sell) and mounting investor skepticism, C3.ai’s risk-reward profile remains unfavorable. For now, investors would be better served exiting positions rather than betting on an uncertain rebound.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

C3.ai Stock Down 42% in a Month: Should You Buy the Dip?

For Immediate Release
Chicago, IL – August 22, 2025 – Zacks Equity Research shares Micron Technology MU as the Bull of the Day and Albany International AIN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla TSLA, Alphabet GOOGL and Baidu BIDU.
Here is a synopsis of all five stocks.
Still flying somewhat under the radar, Micron Technology has become a leader in the AI infrastructure boom due to strong demand for its high-bandwidth memory (HBM) solutions.
With HBM being essential to powering generative AI models, Micron’s stock has started to rebound toward its 52-week highs of $129 a share, with some analysts' price targets calling for new all-time peaks.
Considering such, and in correlation with a trend of very positive earnings estimate revisions, Micron stock sports a Zacks Rank #1 (Strong Buy) and lands the Bull of the Day.
Micron’s AI Infrastructure Advantage
Attributing to its AI infrastructure dominance, Micron is a key supplier for Nvidia’s Blackwell GB200 and AMD’ Instinct MI350 GPUs, which require massive memory bandwidth.
More intriguing, and leading to Micron’s AI Infrastructure advantage, is its pricing power as HBM products are complex to manufacture and wafer-intensive, making supply tight. Notably, Micron has sold out its HBM output for 2025 and is seeing strong demand into 2026, with the scarcity boosting its margins.
Micron’s Stellar Growth
Based on Zacks' estimates, Micron’s total sales are now expected to spike 47% in fiscal 2025 to $36.91 billion compared to $25.11 billion last year. Plus, FY26 sales are projected to climb another 34% to $49.43 billion.
Even more captivating is Micron’s increased profitability, with annual earnings currently slated to skyrocket over 500% this year to $8.04 per share versus EPS of $1.30 in 2024. Better still, FY26 EPS is forecasted to pop another 62% to $13.05.
Leading to bullish sentiment for Micron stock is that FY25 and FY26 EPS estimates have soared 16% and 23% over the last 60 days, respectively, as shown below.
Micron’s Attractive Valuation & Analyst Upgrades
Considering the high premiums AI-infrastructure related stocks are commanding, MU shares still trade at a very reasonable 14.5X forward earnings multiple and at 3.5X forward sales, which are both significant discounts to the S&P 500’s averages.
The culmination of Micron’s execution, along with its reasonable valuation, has led to analysts raising their price targets for MU. It’s noteworthy that JPMorgan raised its price target for MU from $165 to $185, citing stronger DRAM (Dynamic Random-Access Memory) pricing.
Meanwhile, other firms like Mizuho and Needham have remained bullish on Micron’s HBM upside. At the moment, the Average Zacks Price Target of $152.42 suggests 30% upside in Micron stock, which is roughly on par with its all-time high.
Bottom Line
Dominating the AI memory space, now appears to be an ideal time to invest in Micron Technology stock, with MU shaping up to be a viable investment for 2025 and beyond.
This month's rebound in Albany International stock could be short-lived, and it may be time to fade the recent rally as the trend of declining earnings estimate revisions suggests that the textiles and materials processing company is not out of the woods yet after facing a number of headwinds in recent years.
Although AIN has spiked +15% in August, Albany International stock is still down 20% year to date and has a grizzly -32% performance in the last three years.
Albany International also appears to be burning through cash at a very fast rate, which is concerning for its operational and financial outlook as well.
Albany International’s Headwinds
Most recently missing its Q2 EPS expectations by 22% in late July, Albany International has raised concerns about its operational efficiency and forecasting accuracy as rising costs and strategic investments have squeezed profit margins, especially in its engineered composites segment. The issue here is that Albany International is also competing in a high-stakes arena of aerospace and advanced materials manufacturing with specialized defense companies such as Ducommun and Hexcel Corporation.
Furthermore, supply chain disruptions have taken a toll on the company’s operations, limiting production as a supplier of fabric for paper and industrial applications and ultimately impacting delivery timelines.
Declining EPS Revisions & Cash Burn
Taking away excitement for a continued rebound in Albany International stock is that fiscal 2025 and FY26 EPS estimates have trended lower in the last 60 days, dipping nearly 2% and 1.6%, respectively.
What may be most concerning to investors is that Albany International has burned through more than half of its liquidity in the last five years, with its cash & equivalents dropping from over $300 million in 2021 to $107 million at the end of Q2 2025.
Conclusion & Final Thoughts
For now, it may certainly be best to fade the recent rally or avoid Albany International’s stock. Addressing the elephant in the room, Albany International’s growth is respectable, but nothing to necessarily brag about for a company that investors are paying over $60 a share for.
To that point, Albany International has struggled to climb past annual sales of $1 billion or produce full-year EPS of over $4.00, and this is after a drop from a 52-week high of over $90 a share, which may have raised questions about the company’s valuation outside of its operational efficiency.
Additional content:
Two Months into Tesla's Robotaxi Launch: Where Does It Stand Now?
Two months after Tesla rolled out its first commercial robotaxi service in Austin, the big question is—how’s it really going?
Tesla CEO Elon Musk bets the company’s future on autonomous vehicles, pitching robotaxis as the next growth engine. The launch in Austin on June 22 marked a milestone, with paying customers riding in Model Y vehicles monitored by safety drivers and remote operators. In the initial days of the rollout, videos quickly surfaced showing Tesla vehicles braking abruptly, creeping into intersections, or violating traffic rules. Passengers described some rides as confusing.
Having said that, management reassured on the second-quarterearnings callthat robotaxis in Austin logged over 7,000 miles without major safety incidents.
Tesla has also begun testing in the San Francisco Bay Area—though regulators there prevent it from using the “robotaxi” name. Notably, in Austin, the safety monitor sits in the passenger seat but in the Bay Area, regulations still require one in the driver’s seat. Critics, including former Waymo CEO John Krafcik, argue that as long as Tesla vehicles rely on in-car safety monitors, they’re not truly robotaxis at all.
Tesla, however, points to data suggesting that its Full Self-Driving (FSD) system is statistically safer—10 times so, according to management—than human drivers. The shift to the FSD Version 12 has already boosted subscription adoption by 45%. Musk is promising even more with Version 14, which he teased yesterday.
New vehicles can now drive themselves off the assembly line, with direct-to-customer autonomous deliveries planned by year-end in select regions. Also, Tesla aims to extend the robotaxi service to reach half of the U.S. population by the end of 2025, pending regulatory approvals. It plans to expand to other U.S. cities like Nevada, Arizona and Florida after obtaining necessary permits and approvals. Meanwhile, service coverage in Austin is set to grow more than tenfold.
Still, the road ahead isn’t without hazards. Lawsuits accusing Tesla of overstating FSD’s safety, regulatory hurdles in key markets, and technical hiccups highlight the long journey before Musk’s bold vision of a nationwide robotaxi fleet becomes a reality. Plus, Tesla is lagging behind early movers in the robotaxi space like Alphabet’s Waymo and Baidu.
TSLA’s Competitors in the Robotaxi Space
Alphabet’s Waymo is Tesla’s toughest rival in the robotaxi race. Waymo already runs fully driverless Level 4 services in Phoenix, San Francisco, Los Angeles, Austin and Atlanta, delivering around 250,000 paid rides every week. Backed by Alphabet’s $5 billion multi-year investment and partnerships with Hyundai, Uber and Zeekr, Waymo has both scale and strategic muscle. With expansion underway to cities such as Miami and Washington D.C, Waymo is setting the standard that Tesla must catch up to.
Baidu is a major force in the robotaxi industry, though its efforts are concentrated mainly in China. Its autonomous driving program, Apollo Go, is already running fully driverless robotaxi services across 16 cities globally and has completed more than 14 million rides as of August 2025. Baidu is also fast-tracking Apollo Go’s global expansion through high-profile partnerships with Uber and Lyft.
Investor Takeaway
After two months, Tesla’s robotaxi push is still in the early innings. The company shows tangible progress and expansion potential but remains behind leaders like Waymo and Baidu. With regulatory battles and skepticism ahead, investing in this vision is less about today’s revenues and more about Tesla’s ability to eventually deliver on Musk’s bold promise.
The Zacks Rundown on TSLA Stock
Shares of Tesla have lost around 20% year to date compared with the industry’s decline of 16%.
From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 10.12, above the industry and its own 5-year average. It carries a Value Score of D.
The Zacks Consensus Estimate for TSLA’s earnings has been southbound over the past 60 days.
Tesla stock currently carries a Zacks Rank #4 (Sell).
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Micron Technology and Albany have been highlighted as Zacks Bull and Bear of the Day

Thursday, August 21, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Exxon Mobil Corp. (XOM) and AbbVie Inc. (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Jobless Claims Up, Philly Fed Down, Walmart Q2 Mixed
Today's Featured Research Reports
Shares of Alphabet have gained +5.5% over the year-to-date period against the Zacks Internet - Services industry’s gain of +6.9%. The company is riding on strong cloud and search growth. Google Cloud is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. Google Cloud’s annual revenue run rate is now more than $50 billion.
GOOGL is advancing visual and contextual search capabilities. The Circle to Search feature is now active on more than 300 million devices. AI Overviews now reach more than 2 billion users per month and are available in over 200 countries across 40 languages. It is now driving over 10% more queries globally.
Google Cloud is benefiting from its partnership with the likes of NVIDIA and PayPal. Google Cloud’s expanding clientele is expected to boost GOOGL’s top line. However, increasing litigation issues and intensifying competition in cloud computing are concerns.
(You can read the full research report on Alphabet here >>>)
Exxon Mobil’s shares have gained +3.7% over the year-to-date period against the Zacks Oil and Gas - Integrated - International industry’s gain of +6.7%. The company is advancing key oil projects in the Permian Basin and offshore Guyana, boosting production and efficiency. Its recent merger with Pioneer enhances its U.S. operations, while Guyana remains a major growth driver.
Exxon Mobil is also expanding into cleaner energy, with a major low-carbon hydrogen and ammonia plant in Texas and progress in advanced plastic recycling. The company’s low debt exposure positions it to navigate different commodity cycles with ease. The company reported better-than-expected second-quarter earnings fueled by higher liquid production from the United States and stronger industry refining margins.
However, the Chemicals Division remains a weak spot, with global oversupply leading to margin compression. Moreover, ongoing tariff tensions are weighing on the energy giant’s already oversupplied chemicals business.
(You can read the full research report on Exxon Mobil here >>>)
Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+21% vs. +0.2%). The company beats second-quarter estimates for both earnings and sales. AbbVie has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications.
These should support top-line growth in the next few years. AbbVie is returning to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE. It has been on an acquisition spree in the past couple of years to bolster its early-stage pipeline that should drive long-term growth.
However, the company faces several near-term headwinds like Humira LOE impact, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise.
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include Constellation Energy Corp. (CEG), Quanta Services, Inc. (PWR) and Markel Group Inc. (MKL).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Focus on Renewable Energy Aid Constellation Energy (CEG)
Per the Zacks analyst, Constellation Energy gains from expansion of renewable portfolio. Its position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output
Infrastructure Solution Demand Aids Quanta (PWR), Delays Hurt
Per the Zacks analyst, more demand for infrastructure solutions, aiding energy-transition efforts and modernization, will drive growth for Quanta. Yet, project delays and competition are risks.
Markel (MKL) Banks on Acquisitions Amid Escalating Costs
Per the Zacks Analyst, strategic buyouts have aided the company to expand its reinsurance product offerings and boost its surety capabilities. However, high costs remain a concern.
Tapestry's (TPR) Strong Digital Endeavors to Boost Sales
Per the Zacks analyst, Tapestry has been directing resources toward expanding digital and data analytics capabilities. During the fourth quarter, digital revenues increased in mid-teens digits.
Penumbra (PEN) Expands Global Reach, Delivers Solid Growth
According to Zacks analyst, Penumbra's expanding CAVT footprint, RED catheter adoption in Europe, and easing China headwinds position the company for stronger international performance.
International Operations Aid FTI Consulting (FCN), Cost High
Per the Zacks analyst, FTI Consulting's strong international operations make it an excellent partner for global clients, generating continued revenue growth. Rising investment costs is a concern.
Rising Healthcare Expenses to Aid Medical Properties (MPW)
Per the Zacks Analyst, Medical Properties is poised to gain from rising healthcare spending propelled by an aging population. However, substantial debt burden and potential tenant bankruptcies ail.
New Upgrades
Jabil (JBL) Rides on Healthy Demand in Multiple Verticals
Per the Zacks analyst, solid traction in the AI data center infrastructure, capital equipment and warehouse automation markets will likely drive Jabil's top line.
Product Launches & VOXX Acquisition to Aid Gentex (GNTX)
Per the Zacks analyst, sales of Gentex's Full Display Mirror units are expected to rise significantly in 2025, driven by product launches. The acquisition of VOXX is expected to boost revenue growth.
Solid Asset Management Business Supports Main Street (MAIN)
Per the Zacks analyst, Main Street's solid asset management business performance driven by cost efficiency, alongside solid performance of funds will keep aiding its financials.
New Downgrades
Summit's (SMMT) Lack of Pipeline Diversification A Woe
While Summit's progress with its experimental cancer drug is encouraging, the lack of pipeline diversification beyond this drug concerns the Zacks Analyst.
Weak Demand & Margin Pressures Ail International Paper (IP)
The Zacks analyst is concerned that weak demand in end markets, along with higher maintenance outage expense and elevated interest expense will continue to impact International Paper's results.
Avnet (AVT) Hurt by Declining Demand, High Inventory Levels
Per the Zacks analyst, softened demand in a tight IT spending environment, along with high inventory levels at customers, is likely to hurt Avnet's financial performance in the near term.
Free Report: 3 Software Stocks Poised to Skyrocket
Software stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.
Access the report free today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for Alphabet, Exxon Mobil & AbbVie

Alibaba BABA is betting big on capital efficiency with its proposal to spin off Banma Network Technology and list it independently in Hong Kong. The move shifts funding for Banma’s fast-scaling auto-software business to public markets, reducing the company’s direct cash burden while preserving upside through a minority stake. Under the plan, Alibaba’s holding will drop from about 44.72% to just over 30%, subject to regulatory approvals, including the CSRC.
The spin-off addresses a key financial priority, redeploying capital toward higher-return areas like cloud, AI and share buybacks. Alibaba reported a robust net cash position of RMB 366.4 billion as of March 31, and generated RMB 73.9 billion in free cash flow in fiscal 2025, while returning nearly $16.5 billion to its shareholders through repurchases and dividends. Freeing itself from Banma’s funding needs ensures that capital can be allocated to this core growth and return initiatives.
This spin-off appears to be a win-win deal for both companies. It unlocks greater valuation potential for Banma as an independent mobility software leader while allowing Alibaba to streamline operations and focus on core businesses.
The spin-off’s success will largely depend on execution, navigating regulatory hurdles, securing an attractive IPO price and converting OEM alliances into consistent revenue growth. Should these efforts succeed, Alibaba could boost capital returns, concentrate on high-growth core operations and unlock significant shareholder value by turning Banma into a tradable asset.
Alibaba Faces Intensifying Cloud Competition
Amazon’s AMZN-owned Amazon Web Services (AWS) leads the global cloud market, especially in North America and Europe, while Alibaba Cloud dominates Asia-Pacific, particularly China and is expanding globally. Amazon’s AWS is known for its mature, feature-rich services, covering compute, storage, databases, networking and analytics. Although Amazon’s pricing is generally higher, it offers flexible models suited for diverse workloads. Amazon’s extensive capabilities and global reach make it a formidable competitor for Alibaba Cloud.
Alphabet GOOGL-owned Google Cloud Platform offers extensive global reach and seamless integration with the Google ecosystem. Google Cloud is highly regarded for its AI and ML strengths, including tools like Vertex AI and TensorFlow. While Alibaba Cloud provides AI services tailored for practical business applications such as recommendation engines and customer service bots, Google Cloud’s superior data storage, management, and advanced AI capabilities give it a competitive edge. Google Cloud continues to expand its influence worldwide.
BABA’s Share Price Performance, Valuation & Estimates
BABA shares have gained 40.9% in the year-to-date period, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector’s growth of 11.6% and 8.6%, respectively.
BABA’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BABA stock is currently trading at a forward 12-month Price/Earnings ratio of 12.75X compared with the industry’s 25.17X. BABA has a Value Score of C.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for first-quarter fiscal 2026 earnings is pegged at $2.13 per share, which remains unchanged over the past 30 days, indicating a 5.75% year-over-year decline.
Image Source: Zacks Investment Research
Alibaba currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alibaba Aims for Capital Efficiency: Can the Banma Spin-Off Succeed?

SoundHound AI, Inc. SOUN delivered a record-setting second-quarter 2025, with revenue surging 217% year over year to $42.7 million. While growth was broad-based, the restaurant vertical emerged as a standout, underscoring the company’s ambition to dominate the quick-service restaurant (QSR) landscape.
SoundHound expanded its footprint to over 14,000 restaurant locations, adding major names like IHOP, Red Lobster, and Peter Piper Pizza, while deepening relationships with existing customers such as Chipotle, MOD Pizza, and Firehouse Subs. The company also launched strategic partnerships with Acrelec and Par Technologies, aiming to accelerate AI adoption across global QSR chains. These moves position SoundHound as a leading provider of voice-enabled ordering, customer support, and drive-thru automation solutions.
Management emphasized the traction of its Amelia 7 agentic AI platform and its proprietary Polaris foundation model, which are boosting renewals and upsells. Importantly, Voice Commerce is gaining momentum, promising to link QSRs with automakers and merchants in a seamless ecosystem that could drive future monetization.
Yet challenges remain. SoundHound faces intense competition from both established tech giants and niche AI players. Profitability is still on the horizon, with the second quarter showing a non-GAAP net loss of $11.9 million. Execution risk in scaling restaurant deployments and managing hardware partnerships could also slow momentum.
Still, with strong customer wins, a growing QSR presence, and a differentiated technology stack, SoundHound is carving out a compelling growth story in restaurant AI.
SoundHound’s Competitors in the Restaurant AI Race
As SoundHound deepens its presence in quick-service restaurants, it faces formidable competition from Amazon AMZN and Alphabet’s Google GOOGL. These tech giants bring unmatched scale, brand recognition, and AI capabilities that make them significant rivals.
Amazon, through Alexa and AWS, has long been a leader in voice-enabled technologies. Alexa’s integrations into smart devices, retail platforms, and experimental restaurant applications give Amazon a strong foothold. For QSR operators seeking established ecosystems and cloud infrastructure, Amazon remains a powerful competitor to SoundHound.
Google has equally strong credentials in conversational AI, particularly with its Dialogflow platform. Google’s natural language processing expertise and cloud dominance make it a key player in restaurant automation. QSR brands leveraging Google Cloud often tap into Dialogflow for customer interactions, creating direct overlap with SoundHound’s offerings.
Together, Amazon and Google represent deep-pocketed competitors that could pressure SoundHound’s ability to secure long-term dominance in QSR AI.
SOUN’s Price Performance, Valuation and Estimates
SoundHound’s shares have gained 28.3% in the past three months, against the Zacks Computers - IT Services industry’s 8.8% decline.
SOUN Price Performance
Image Source: Zacks Investment Research
In terms of its forward 12-month price-to-sales ratio, SOUN is trading at 25.35, up from the industry’s 17.21.
P/S (F12M)
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for SOUN’s 2025 loss per share has narrowed to 13 cents from 16 cents. The estimated figure indicates an improvement from the year-ago loss of $1.04 per share.
Image Source: Zacks Investment Research
SOUN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence
Support
Cash flows

	S/L 5%RUB 195.79	S/L 10%RUB 185.48	S/L 15%RUB 175.18
Day	0.03%	0.00%	0.00%
Week	10.22%	0.08%	0.00%
Month	42.51%	10.14%	1.15%

Alphabet Inc.

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short

Momentum

Protective stop levels