Cathie Wood’s ARK Invest purchased approximately $14.17 million in Alphabet shares ahead of its earnings report. Alphabet stock has rallied 118% over the past year, driven by its cloud business and AI custom chips. The company’s significant capital expenditure on AI data centers is seen by some, including Goldman Sachs, as an under-appreciated investment that will solidify its competitive advantage and future cash flow.
Ark Invest’s ETFs made several moves before an earnings wave, including a major purchase of Alphabet. ARK Innovation ETF bought 40,656 shares of Alphabet valued at approximately $14.17 million. GOOGL stock has rallied 118% over the past year and 12% year-to-date. This performance is driven by its cloud business and rising demand for its custom TPU chips.
Alphabet will publish its earnings call after the closing bell on Wednesday. This report 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 invested in GOOGL.
Goldman Sachs is the only financial giant to place a continuous ‘buy’ call for Google stock since September 2021. 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.
Traders are expecting a larger-than-usual 5.67% swing in GOOGL stock price post-earnings. 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 these investments will cement Alphabet’s lead in the AI race.
Alphabet’s valuation exceeded $4 trillion, gaining a rank among 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.
