Name: Fast Money traders talk Alphabets record trading day
Uploaded: 2025-11-24T23:17:35.007Z
Duration: 5 min 23 s
Description: Alphabet had a massive record day at Wall Street, and the bounce may be keeping the AI trade alive.

Alphabet had a massive record day at Wall Street, and the bounce may be keeping the AI trade alive.

Wall Street

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Traders on CNBC's 'Fast Money' discussed Alphabet's record trading day, highlighting the company's significant progress in artificial intelligence since its initial Bard rollout and the resulting positive sentiment shift. Despite Alphabet's strong performance and broad AI integration across its platforms, concerns remain about the sustainability of its growth, future earnings, and the impact of AI on core search revenue.

Panelists noted that while Alphabet's valuation has risen rapidly, its earnings growth is projected in the high single digits, and margin pressures persist. The company maintains a strong balance sheet and potential for further monetization, particularly from YouTube and AI, but some investors believe the stock may be slightly ahead of itself and are considering selling upside calls.

'Fast Money' traders talk Alphabet's record trading day

So is Alphabet's rebound a good or bad sign for the rest of the AI trade? Are we seeing any kind of rotation here, do you think, Dan? Definitely rotation. I mean, we've been mentioning this. A handful of the Mag 7 have underperformed not only their peers, but also the S&P 500. And the thing about Alphabet is really interesting. There's a lot of moving parts there, right? And for those folks, and Karen's gonna obviously speak about her thesis that she's had for multiple years, is that this thing has made considerable progress from a really bad rollout. I don't know if you guys recall, barred. And it was a joke. And one day we walked in and the stock was down like 6%, and everyone's like looking around. They're like, yeah, they're in Paris, and they had this thing, and it was just a bad, bad rollout. And this was coming right after the chat GPT rollout. Well, obviously things have changed. There's been naysayers the whole way, but right now you have a situation where, yes, they've gotten tremendous reviews. You think about their distribution. They have six or seven platforms with over 2 billion users, right? For them to kind of infuse this technology throughout all of them, that's great. They still have the issue of these overlays and AI mode. It might put a dent a little bit into that search revenue. I know that's been one pillar of the bear case, but when you talk about a stock that's moved this way in such a short period of time, there should be some sort of check back. And I don't mean just on price, but I also mean as far as sentiment is concerned. So I look at this thing. I see it trading at like 27 times forward, 28 times forward, and you have growth that's not really accelerating. Now, that's the good thing. If the numbers right now, consensus, is just too low, then there's more room to run. I'm not so sure that's the case. I'm not so sure analysts are able to make that case right here, right now for 2026. I mean, if you thought 28 or 29 was expensive for Alphabet, it's really closer to 30 with this run. I mean, that's how much it's gained in terms of the market, excuse me, the forward PE. Yeah, although when you say it's not gonna grow, I mean, I think if you look at the numbers for Google Cloud, which I, you know, admittedly, much, much, much smaller, you know, a fraction of the size of search, but that's growing, I mean, it's grown 50%. Right, but their margins next year are supposed to, like, check down like 2%, right? Like, so from 65. Those are still some really good margins. Right, but they're going the wrong way. I mean, like, as far as I'm concerned, and I'm not debating, I mean, like, the stock's been amazing, you know what I mean? But I'm just saying, like, when you think about the growth that is expected, earnings and sales, I mean, the earnings growth is like high single digits, you know what I mean? So you're gonna need to see some sort of meaningful upgrade to earnings expectations, especially in a, like, in a margin environment that's expected to kind of weaken a bit. It's been an extraordinary run. It was not expected. I mean, we've had multiple conversations since July on this desk about suddenly their core search being dead. Then suddenly you have Gemini, multiple iterations getting better. You have this DOJ settlement that at least makes it clear that Google is, whatever turf they've carved out is still theirs, and that's, as we know, good for multiple players. But I think you just get to this case where it was so oversold. It was so underappreciated, and the analyst community, which knew Gemini 3 updates were coming out here, suddenly seems to somehow have been caught behind. So I think it's interesting. I think for the markets overall, the fact that we have mega cap tech having been so poor outside of Google and Broadcom over the last six to eight weeks is very good for the market going into year. And I think there are a lot of people that wanted to buy Amazon here. I think there are a lot of people that are looking at Microsoft and saying, you know, let's do this. And by the way, after bouncing off the 100 day, the semiconductors or the SOX or whatever you're following, SMH, is up 9% from the intraday low on Friday, which just tells you, you can't get too far away from this trade. And people that are trying to be overly tactical one way or the other, I think this was another missed opportunity. So, Serge, I mean, we talked about that. The fears are definitely overblown at the moment. We don't know exactly how it's going to evolve. But remember, though, they, so everybody's in this CapEx band, and that's been the fear. The Google balance sheet of all of them is still net cash. This is not a drain on them at all. Now, could they fund it through debt? That's probably makes more sense for them to do that. But also talk about YouTube. I don't think YouTube, the sum of the parts valuation, I don't think is getting really enough play as it should. So there's YouTube, there's Waymo, other bets, which is a negative. I don't know how much to think of that, but the balance sheet with net cash still. And then we haven't seen yet anything close to what the monetization of AI could be for them, right? We've probably seen it somewhat in search and how well search is done. But, and I think Tim's right, it really was overdone. I mean, and the remedy to the first part of the antitrust was much better than we thought. But all that having been said, I'm looking now to sell some upside calls because I think it's run so far so fast. Is it overvalued? Is it overvalued? No, but I feel like it's a little ahead of itself and the calls are, you know, the skew is very much in favor of the call. So I'm looking to sell.

The Gaza Humanitarian Foundation, the U.S.- and Israeli-backed organization to distribute aid in Gaza, said on Monday (November 24) it was ending its operations after months of criticism over the deaths of hundreds of Palestinians trying to reach GHF hubs.

Tel Aviv-Yafo

Divisive U.S.- and Israeli-backed Gaza aid group ends operations

The head of Sudan's Rapid Support Forces (RSF), General Mohamed Hamdan Dagalo, said late on Monday (November 24) that his paramilitaries would immediately enter into a three-month humanitarian truce in its conflict with the country's armed forces.

Darfur

Sudan's RSF paramilitary says it will enter into a ceasefire

Chauncey Billups, who was serving as head coach of the Portland Trail Blazers until his suspension, pleaded not guilty on Monday to charges related to alleged rigged high-stakes poker games.

Chauncey Billups pleads not guilty to charges

The Kremlin on Monday (November 24) said that a European counter-proposal to a U.S. 28-point peace plan for Ukraine was not constructive and that it simply did not work for Moscow.

Moscow

Kremlin rejects revised European peace plan to end war in Ukraine

A federal judge has dismissed the criminal cases against former FBI Director James Comey and New York Attorney General Letitia James on the grounds that Lindsey Halligan, the interim U.S. attorney who secured their indictments, was unlawfully appointed to the role.

Washington

Cases against James Comey, Letitia James dismissed

At least 90 people have died in a week of torrential rain, flooding and landslides in south-central Vietnam, authorities said. Popular tourist areas have been heavily hit, with parts of Nha Trang submerged and deadly landslides cutting off roads near Da Lat.

Nha Trang

Vietnam flooding kills at least 90

The Trump Administration is ramping up pressure on Venezuela as the Air Force conducted a simulated nighttime attack along the country's coast. Charlie D'Agata has the latest.

Caracas

Trump ramps up pressure on Venezuela with nighttime Air Force attack

Israel killed Ali Tabtabai, the acting chief of staff of militant group Hezbollah, in an airstrike on a southern suburb of Beirut on Sunday, the Israeli military said.

Beirut

Middle East Conflict

Israel kills Hezbollah military leader in Beirut strike

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Kyiv

Ukraine Invasion

Ukraine upholds red lines as Geneva peace talks continue

Álvaro García Ortiz's decision came less than a week after he received a two-year suspension and a fine for disclosing private information about the partner of an opposition politician.

Madrid

Spain's attorney general resigns after conviction over data leak

U.S. President Donald Trump's Department of Government Efficiency has been disbanded with eight months remaining in its mandate, and Office of Personnel Management Director Scott Kupor has told Reuters that the cost-cutting body now "doesn't exist".

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Al-Burhan rejected a new truce proposal from US envoy as the “worst yet”, accusing the Quad mediators of bias due to the UAE’s involvement.

Al Fashir

Sudan’s army chief rejects quad truce proposal as ‘worst yet’

Three suicide bombers and three security personnel killed in attack on the Federal Constabulary headquarters in Peshawar, media reports say.

Peshawar

Six killed in suicide attack on security complex in Pakistan

The attack which Israel says to have killed chief of staff Haytham Tabtabai in the southern suburbs of Beirut also killed four other people and injured 25.

Israel says to have killed top Hezbollah official in strike on Beirut

UK Prime Minister Keir Starmer suggested that former Prince Andrew should testify before the U.S. Congress as part of its ongoing investigation into Jeffrey Epstein. Starmer did not discuss Andrew’s case directly but said, as a matter of principle, everyone involved should cooperate with the inquiry.

London

Starmer says former Prince Andrew should testify in Epstein probe

About 50 schoolchildren aged 10–18 who were abducted in Niger state, Nigeria, have escaped, authorities confirmed. They fled individually between Friday and Saturday, according to the Christian Association of Nigeria, which runs the school. Officials continue to track those still missing.

Niger

50 abducted Nigerian schoolchildren escape, authorities say

The first G20 summit to be held in Africa has been labelled a "triumph of multilateralism," as leaders from the world's more powerful economies came together in Johannesburg. South African leader Cyril Ramaphosa used his presidency to highlight the priorities of Africa and the global south.

Johannesburg

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Belém

COP30 climate deal falls short of expectations

Washington signaled room for negotiation on a 28-point plan to end the Ukraine war, denying claims by some U.S. senators that it is a Russian "wish list," as Kyiv and European allies criticized the proposal ahead of Sunday talks in Geneva.

Geneva

Europeans push for stronger deal for Ukraine as Geneva talks continue

The United States is set to launch a new phase of Venezuela-related operations in the coming days, four U.S. officials told Reuters, as the Trump administration steps up pressure on President Nicolas Maduro's government.

U.S. to launch new phase of Venezuela operations, sources say

Premier Li Qiang said Beijing wants to work with Pretoria to safeguard the multilateral trading system.

China pledges to work more closely with South Africa

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UN climate talks end with no binding deal on fossil fuels

U.S. Rep. Marjorie Taylor Greene of Georgia, a once-loyal supporter of Donald Trump who has since become a critic of the president, said she is resigning from Congress in January. Greene's resignation followed a public fallout with Trump over the Epstein files.

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The Coast Guard said it conducted its largest cocaine seizure in history worth an estimated $362 million. Take an inside look as officials offload the nearly 50,000 pounds of drugs.

Coast Guard announces largest cocaine seizure in agency history

U.S Secretary of State Marco Rubio and special envoy Steve Witkoff are due to arrive in Geneva on Sunday to push for President Donald Trump's plan to end the war in Ukraine. European and Ukrainian officials will take part in the talks.

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The G20 summit opened on Saturday (November 22) with EU leaders and their counterparts from leading and emerging economies coming together as Washington's proposed peace plan for Ukraine loomed large on the sidelines.

Soweto

Leaders adopt declaration at Africa's first G20 summit

Federal police have detained Brazil’s ex-president Jair Bolsonaro after a Supreme Court judge deemed the far-right firebrand a "high flight risk." The arrest comes just days before Bolsonaro is due to begin a 27-year prison term for leading a botched coup attempt.

Rio de Janeiro

Brazil ex-president Bolsonaro arrested due to "flight risk"

Pope Leo XIV met with some of the rescued Ukrainian children who were kidnapped by Russian forces throughout the war as the Vatican ramps up its efforts to get all of the nearly 20,000 abducted kids home to Ukraine.

Rome

Pope Leo XIV meets with rescued Ukrainian children

U.S. President Donald Trump and New York City's incoming progressive mayor Zohran Mamdani were all smiles at a White House meeting, promising to set aside months of bitter feuding and cooperate on the city's future.

Trump hosts warm White House meeting with N.Y. mayor-elect Mamdani

Hopes for a strong G20 declaration on climate and debt relief are slim as South Africa hosts the summit from Saturday (November 22). Global tensions and a boycott by the U.S. threaten to overshadow the gathering.

'Fast Money' traders talk Alphabet's record trading day

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