Brent Thill

Alphabet is raising $80B in equity from a position of strength, not weakness. They have a massive cash flow ($126B cash), leading AI position with integrated stack (Gemini, hardware, semi infrastructure), and the AI capex cycle is still early. The dilution is manageable relative to the $4.5T market cap, and the move strategically front-runs upcoming mega IPOs (SpaceX, Anthropic, OpenAI). Alphabet's forward P/E of 28x is not extreme, and the earnings growth supports the valuation.

Snowflake is a huge winner in AI. The company beat revenue estimates by $70M and raised full-year guidance by more than the beat. Backlog grew 38%. The narrative that Databricks was crushing them became overly negative. Snowflake's platform is essential for enterprises to stage and manage data for AI, and all major cloud platforms use its technology. Snowflake provides the safe harness to run AI workloads, and the stock has more upside due to the gravitational pull to create agents.

Jefferies downgraded both stocks. Workday specifically has seen a CEO change, executive turnover, and investors are skeptical of its 13-14% growth targets. The market is currently punishing "legacy SaaS" companies that cannot prove immediate AI monetization. Management turnover combined with slowing growth creates a "show me" story that usually leads to multiple compression (Derating). SHORT / AVOID. An unexpected earnings beat or faster-than-anticipated AI product rollout could trigger a short squeeze.

Jefferies downgraded both stocks. Workday specifically has seen a CEO change, executive turnover, and investors are skeptical of its 13-14% growth targets. The market is currently punishing "legacy SaaS" companies that cannot prove immediate AI monetization. Management turnover combined with slowing growth creates a "show me" story that usually leads to multiple compression (Derating). SHORT / AVOID. An unexpected earnings beat or faster-than-anticipated AI product rollout could trigger a short squeeze.