Dan Ives: Alphabet earnings will set the tone for mega-cap tech earnings
Speakers
Dan Ives
— Managing Director, Wedbush Securities
Bryn Talkington
— Managing Partner, Requisite Capital Management
Summary
Dan Ives and Bryn Talkington discuss Alphabet's upcoming earnings as a tone-setter for mega-cap tech. They are both bullish on Alphabet, citing cloud acceleration, AI monetization, and market willingness to fund capex. Bryn also flags potential bond market exhaustion from heavy tech issuance.
- Dan Ives calls Alphabet the best-positioned hyperscaler heading into earnings.
- He highlights mid-60% cloud growth, search strength, Gemini, and capex monetization.
- Bryn Talkington expects Alphabet to raise capex again and deliver ~$117B in revenue.
- She emphasizes vertical AI integration, YouTube ads, and 25% Google Cloud growth.
- Both agree the market will tolerate heavy spend due to clear monetization gains.
- Ives sees Alphabet's report setting a positive tone for Microsoft, Amazon and Meta.
- Talkington cautions that massive tech bond issuance could eventually push yields higher.
Ideas
Alphabet leads hyperscalers on cloud monetization
Alphabet is the best positioned hyperscaler because of mid-60% cloud growth, a historic turnaround, enterprise AI monetization, strong search and Gemini performance, and rising capex that is increasingly showing monetization, setting a positive tone for Microsoft, Amazon and Meta earnings.
