THE APEX TIMES
Despite Alphabet shares dropping after a snapped 12-quarter earnings beat streak, Goldman Sachs said investors may be over-weighting what went wrong and under-weighting where growth is likely to come from, particularly in artificial intelligence.
Alphabet’s latest earnings release disrupted a pattern investors had come to rely on. According to a market report cited by Yahoo Finance, the company’s results ended a 12-quarter streak of earnings beats, triggering a sharp selloff in its shares.
In the immediate aftermath, at least some investors appeared to treat the earnings miss as evidence that Alphabet’s underlying business momentum was weakening. Goldman Sachs, however, reportedly pushed back on that interpretation, arguing that the selloff may be based on an incomplete read of what actually drove the miss.
The key thrust of Goldman’s stance, as described in the report, is that the factors behind the earnings shortfall were not necessarily the same as the drivers that will shape the company’s longer-term growth. The bank continued to frame Alphabet as a top artificial intelligence pick, even while acknowledging that the quarter did not meet the prior bar.
The report further characterizes the bank’s view as more forward-looking than the market reaction. Rather than treating the snapped streak as a clear announcement of a deteriorating trend, Goldman suggested the more important question is where Alphabet’s spending, product adoption, and AI monetization are headed next.
For Alphabet, AI is not just a research theme but a platform for product improvements across search, advertising, cloud, and a broader set of consumer and enterprise tools. When investors focus on a single quarter’s earnings and guidance, they can miss how quickly AI-enabled changes might show up in engagement and monetization in subsequent periods.
Goldman’s “top AI pick” label matters in part because it comes from a major broker that influences how institutional investors think about risk-reward in large-cap tech. Even when a large company misses on earnings, continued buy-side support often depends on whether analysts believe the issue is temporary, accounting for timing and cost, versus structural.
Still, what Goldman did not disclose in the brief market report is important. The cited post does not spell out the specific operational or financial drivers behind the earnings miss, nor does it detail any revised targets, valuation framework, or changes to segment-level forecasts. Without those particulars, it is not possible to assess whether Goldman’s argument rests on margin normalization, demand durability, or simply timing.
For investors and analysts monitoring Alphabet, the next signpost is how quickly the company’s reported performance reconciles with AI-related growth expectations. The immediate watch items are whether subsequent updates confirm that the miss was an outlier and whether AI-enabled product improvements translate into measurable monetization across its core businesses.
The card network reported that annualized stablecoin settlement volume has surpassed $25 billion, describing a sharp expansion in activity where stablecoins are used as a value-transfer mechanism.
The bank raised its price target for the British insurer and cited scope for stronger performance in its UK insurance business.
In a recent note reported by Yahoo Finance, the bank pointed to what it described as misconceptions about “powered-shell” bitcoin mining providers and reiterated a favorable industry view for TeraWulf.
The bank’s updated assumptions push its SpaceX valuation higher, based on expected infrastructure spending in 2027 and a near-term compute capacity target that is below management’s stated goal.
A Yahoo Finance market piece compares the outlook for Visa (V) and Block (SQ), focusing on expected growth momentum, valuation considerations, and how each company’s payments ecosystem could evolve.
In a new valuation note reported by Yahoo Finance, Goldman Sachs says CoreWeave’s capital plan depends on how much of its backlog is effectively funded by prepayments, with estimated incremental debt ranging from about $20 billion to as high as $38 billion.