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$GOOGL CEO Sundar Pichai on whether Google is being disrupted by AI:
“One of the first things I did was to think of the company as AI-first... The reason we were excited to approach our work as AI-first is because we really felt that AI is what will drive the biggest progress in search. So it feels very far from a zero-sum construct to me.”
“AI Overviews is now being used by over 1.5 billion users in over 150 countries... We find for queries where we trigger AI overviews, we see query growth and the growth continues over time.”
“To your question about innovator's dilemma — I think the dilemma only exists if you treat it as a dilemma. So for me, all along in technology, you have these massive periods of innovation, and you lean into it as hard as you can. It's the only way to do it.”
“When mobile came, everyone was like, well... you’re not going to have the real estate, how will ads work, all that stuff. Mobile was a transition which ended up working great.”
“To me, you don’t think about it as a dilemma, because you have to innovate to stay ahead.”
“It’s like one of the original principles of Google — follow the user, all else will follow.”
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$GOOGL CEO Sundar Pichai on whether Google is being disrupted by AI:
“One of the first things I did was to think of the company as AI-first... The reason we were excited to approach our work as AI-first is because we really felt that AI is what will drive the biggest progress in search. So it feels very far from a zero-sum construct to me.”
“AI Overviews is now being used by over 1.5 billion users in over 150 countries... We find for queries where we trigger AI overviews, we see query growth and the growth continues over time.”
“To your question about innovator's dilemma — I think the dilemma only exists if you treat it as a dilemma. So for me, all along in technology, you have these massive periods of innovation, and you lean into it as hard as you can. It's the only way to do it.”
“When mobile came, everyone was like, well... you’re not going to have the real estate, how will ads work, all that stuff. Mobile was a transition which ended up working great.”
“To me, you don’t think about it as a dilemma, because you have to innovate to stay ahead.”
“It’s like one of the original principles of Google — follow the user, all else will follow.”
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Google CEO Sundar Pichai says they almost acquired $NFLX:
“There are acquisitions we debated hard... maybe Netflix.” https://t.co/00gNfWBm8X
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Google CEO Sundar Pichai says they almost acquired $NFLX:
“There are acquisitions we debated hard... maybe Netflix.” https://t.co/00gNfWBm8X
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Wall St Engine
Goldman Sachs Reiterates Buy Rating on $WMT, Says Well Positioned for 2025 Earnings Growth, Maintains PT at $101
Analyst comments: "WMT closed down -0.5% (vs. the S&P 500 at +0.4%) after a 1Q earnings beat and reiteration of 2025 guidance. In our view, while the environment remains uncertain, we were not surprised WMT reiterated full-year guidance given tariffs are lower now than when guidance was reiterated on April 9, 2025. WMT also highlighted offsets such as inventory management and alternative revenue streams to support bottom-line growth, along with managing assortment and pricing.
The stock reaction may partly reflect the lack of 2Q operating income or EPS guidance amid a dynamic macro backdrop shaped by tariffs, which could lead to higher prices and weaker-than-expected elasticity. However, we believe WMT is well positioned to continue driving solid earnings growth in 2025, supported by market share gains due to its compelling value and convenience proposition. Profitability should also improve. We reiterate our Buy rating and $101 price target."
Analyst: Kate McShane
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Goldman Sachs Reiterates Buy Rating on $WMT, Says Well Positioned for 2025 Earnings Growth, Maintains PT at $101
Analyst comments: "WMT closed down -0.5% (vs. the S&P 500 at +0.4%) after a 1Q earnings beat and reiteration of 2025 guidance. In our view, while the environment remains uncertain, we were not surprised WMT reiterated full-year guidance given tariffs are lower now than when guidance was reiterated on April 9, 2025. WMT also highlighted offsets such as inventory management and alternative revenue streams to support bottom-line growth, along with managing assortment and pricing.
The stock reaction may partly reflect the lack of 2Q operating income or EPS guidance amid a dynamic macro backdrop shaped by tariffs, which could lead to higher prices and weaker-than-expected elasticity. However, we believe WMT is well positioned to continue driving solid earnings growth in 2025, supported by market share gains due to its compelling value and convenience proposition. Profitability should also improve. We reiterate our Buy rating and $101 price target."
Analyst: Kate McShane
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To clarify, Bill Ackman posted on X that while their 13F shows they sold $NKE common stock, it doesn’t reflect that they replaced it with OTC call options in a similar notional size. https://t.co/ReuP0jkEnJ
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To clarify, Bill Ackman posted on X that while their 13F shows they sold $NKE common stock, it doesn’t reflect that they replaced it with OTC call options in a similar notional size. https://t.co/ReuP0jkEnJ
BILL ACKMAN’S PERSHING SQUARE CAPITAL MANAGEMENT JUST FILED ITS Q1'24 13F.
HE SOLD OFF HIS ENTIRE POSITION IN $NKE, & ADDED $UBER — NOW HIS NUMBER ONE HOLDING.
HERE’S A LOOK AT HIS FULL PORTFOLIO: https://t.co/InWXLQ4zFj tweet
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BREAKING: Novo Nordisk CEO Lars Fruergaard Jørgensen to step down
After 8 years leading $NVO through major growth, CEO Lars Jørgensen will step down amid recent market pressure and share price decline. He’ll stay on during the transition as a search for his successor begins. Lars Rebien Sørensen to join the board as an observer.
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BREAKING: Novo Nordisk CEO Lars Fruergaard Jørgensen to step down
After 8 years leading $NVO through major growth, CEO Lars Jørgensen will step down amid recent market pressure and share price decline. He’ll stay on during the transition as a search for his successor begins. Lars Rebien Sørensen to join the board as an observer.
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Wall St Engine
Raymond James Reiterates Market Perform on $UNH, Says Earnings Quality Now a Concern, Cuts Estimates
Analyst comments: "We are reiterating our Market Perform rating on UNH and taking a sharper pencil to our numbers, cutting our 2025 adjusted EPS estimate to $20 (from $22) and our 2026 estimate to $23 (from $25). We have rebased 2024 EPS to $23.97 after adjusting for $4.0 billion ($3.70 EPS) in one-time accounting gains UNH booked in 2024.
These included: 1) $3.3 billion in gains from 'strategic portfolio refinement'—essentially asset sales—with $1.4 billion from Optum Health, $1.1 billion from UHC, and $800 million from Optum Insight; and 2) $710 million in investment income tied to unrealized gains in the venture portfolio. We treated the $3.3 billion as pretax and the $710 million as after-tax.
Needless to say, we think these earnings are low-quality and non-recurring. Our assumptions include: 1) rebasing 2024 EPS to $23.97; 2) assuming Optum Health delivers a 10% margin on ~$45B FFS revenue and 0% on ~$60B risk revenue for $4.5B in 2025 EBIT; 3) a ~2% y/y margin decline at UHC due to increased MA cost trends, implying MA margins down ~400 bps y/y; and 4) Optum Insight performing within guidance and Optum Rx slightly outperforming. That said, we’re unclear how Optum Insight can grow EBIT by ~$920M while overcoming the $800M 2024 gain.
The punch line here is that—beyond known macro headwinds—UNH is now also an earnings quality and visibility story."
Analyst: John Ransom
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Raymond James Reiterates Market Perform on $UNH, Says Earnings Quality Now a Concern, Cuts Estimates
Analyst comments: "We are reiterating our Market Perform rating on UNH and taking a sharper pencil to our numbers, cutting our 2025 adjusted EPS estimate to $20 (from $22) and our 2026 estimate to $23 (from $25). We have rebased 2024 EPS to $23.97 after adjusting for $4.0 billion ($3.70 EPS) in one-time accounting gains UNH booked in 2024.
These included: 1) $3.3 billion in gains from 'strategic portfolio refinement'—essentially asset sales—with $1.4 billion from Optum Health, $1.1 billion from UHC, and $800 million from Optum Insight; and 2) $710 million in investment income tied to unrealized gains in the venture portfolio. We treated the $3.3 billion as pretax and the $710 million as after-tax.
Needless to say, we think these earnings are low-quality and non-recurring. Our assumptions include: 1) rebasing 2024 EPS to $23.97; 2) assuming Optum Health delivers a 10% margin on ~$45B FFS revenue and 0% on ~$60B risk revenue for $4.5B in 2025 EBIT; 3) a ~2% y/y margin decline at UHC due to increased MA cost trends, implying MA margins down ~400 bps y/y; and 4) Optum Insight performing within guidance and Optum Rx slightly outperforming. That said, we’re unclear how Optum Insight can grow EBIT by ~$920M while overcoming the $800M 2024 gain.
The punch line here is that—beyond known macro headwinds—UNH is now also an earnings quality and visibility story."
Analyst: John Ransom
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