Cathie Wood’s ARK Invest ETFs made several moves on Tuesday, before today’s earnings wave, including a big buy into Alphabet (GOOGL). The purchase of 40,656 shares of Alphabet through the ARK Innovation ETF was valued at approximately $14.17 million. GOOGL stock has been a powerhouse performer, rallying 118% over the past year and 12% year-to-date, driven by its cloud business and the rising demand for its custom TPU chips.
Alphabet will publish its earnings call today after the closing bell on Wednesday, which will decide the direction of Google stock Class A. The leading equity crossed the $352 mark this week but will open on Wednesday’s bell at $350. Cathie Wood is one of numerous Wall Street bulls who are in on GOOGL, and if earnings bode well, the stock could return solid profits.
Goldman Sachs is the only financial giant to place a ‘buy’ call for Google stock continuously since September 2021. The investment bank wrote that despite its growth, Alphabet remains under-appreciated due to its capex on AI. The bank explained that Alphabet will scale its computing business and monetize the platform and application layers. This leads to a stream of income, allowing Alphabet to gain an advantage in cash flow.
Furthermore, traders are expecting a larger-than-usual 5.67% swing in GOOGL stock price post earnings. While investors are bracing for a slight dip in earnings due to the company’s massive $175–$185 billion capital expenditure plan for AI data centers, Ark Invest and Cathie Wood appear confident that these investments will cement Alphabet’s lead in the AI race.
Alphabet’s valuation exceeded $4 trillion, gaining a rank of one of the world’s most valuable companies. The string of new AI launches can give Google stock a boost in the charts. Even with GOOG trading at $337, the equity looks promising for the long-term horizon. GOOG is also among the stocks to never be sold for the next 10 years.