Motley Fool Money Big Tech Breaks the Bank for AI
29 snips
Oct 31, 2025 
Asit Sharma, a tech and markets commentator, teams up with Lou Whiteman, a seasoned market analyst, to dissect the latest big tech earnings. They explore Alphabet's impressive cloud growth and Meta's struggles with AI monetization. Amazon's resurgence in retail and AWS momentum also takes center stage. A fun segment called 'Trick or Treat' has them evaluating stocks like Nike and Microsoft, while Netflix's unexpected stock split makes waves. Their insights into Coinbase add a splash of color to the lively discussions.
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Cloud Profitability Is Accelerating
- Alphabet's cloud margin jumped from 17% to 24%, showing AI-driven monetization and favorable pricing.
- The cloud business reached profitability recently and scales profitably as it grows, per Asit Sharma and Lou Whiteman.
Google Is More Than Search Now
- Alphabet's overall margins rose 200 basis points and cloud operating income grew much faster than revenue.
- Scale and premium consumer products like YouTube are driving diversified growth beyond search, per Lou Whiteman.
YouTube Matches Search Monetization
- YouTube and search are growing at similar rates, implying comparable monetization per unit of attention.
- Consistent YouTube growth provides a durable avenue as other parts of Alphabet mature.