iShares Global Comm Services ETF (ARCA: IXP)

最新ニュース iShares Global Comm Services ETF (ARCA:IXP)

iShares Global Telecom ETF

Communication Services

Technology

Consumer Cyclical

Other

Industrials

The Fund seeks to track the investment results of the S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index; the Underlying Index, which is designed to measure the performance of global equities in the communication services sector; as determined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI.

Meta Platform Inc 

Alphabet Inc Cl-a

Alphabet Inc., Cl. C

Verizon Communications, Inc.

Tencent Holdings Ltd

Netflix Inc

Comcast Corp New-cl A

Walt Disney Co

At&t, Inc.

T-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558

iShares Global Comm Services ETF

Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), the parent company of Google, reported stellar third-quarter earnings that not only beat Wall Street&#8217;s expectations but also drove the combined market cap of the &#8220;Magnificent Seven&#8221; tech giants to <a href="https://www.benzinga.com/topic/magnificent-7">an unprecedented $16.8 trillion.</a>
Alphabet's earnings per share came in at $2.12, a 37% increase over the same quarter last year, far exceeding the consensus estimate of $1.55, according to data from <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent103024&amp;t=be2bearmibe3na1">Benzinga Pro.</a>
Revenue reached $88.27 billion, representing a 15% year-over-year rise and surpassing the $86.39 billion that analysts anticipated.
Google advertising business was a key factor leading to the rise in revenue, totaling $65.9 billion, up from $59.6 billion last year. 
Read More: <a href="https://www.benzinga.com/news/earnings/24/10/41611263/alphabet-q3-earnings-highlights-revenue-beat-eps-beat-google-cloud-up-35-momentum-across-the-compan">Alphabet Q3 Earnings Highlights: Revenue Beat, EPS Beat, Google Cloud Up 35%, &#8216;Momentum Across The Company Is Extraordinary&#8217;</a>
<h3 class="wp-block-heading">Alphabet Stock Surge Adds Over $150 Billion To Market Cap</h3>
As a result of these impressive numbers, Alphabet's shares rallied over 6% by mid-morning on Wednesday, marking its best trading session since April. 
The stock price increase translated into a more than $150 billion rise in Alphabet&#8217;s market capitalization, which now stands at $2.239 trillion.
Alphabet's surge also gave a substantial lift to the combined valuation of the Magnificent Seven, pushing it to a record-high $16.8 trillion. 
<h3 class="wp-block-heading">Mixed Performance Among the Magnificent 7</h3>
While Alphabet soared on the back of its strong quarterly report, other stocks within the Magnificent Seven showed mixed performance on Wednesday. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) slid as investors grew cautious on semiconductor stocks following weaker-than-expected earnings from Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>).
The week remains pivotal for the Magnificent Seven, as several other tech giants are set to release their quarterly earnings. Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) will report their results after the close on Wednesday, while Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) will follow suit on Thursday after the market close.
Looking at the group's recent performance, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) emerged as the strongest over the last five days, with its stock gaining 20.28% following a positive reaction to its recent earnings report.
Here's a breakdown of market caps, recent price changes and year-to-date returns for each company within the Magnificent Seven:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Market Cap</td>
<td>Price Chg (5 Days)</td>
<td>Total Return (YTD)</td>
</tr>
<tr>
<td>Apple Inc.</td>
<td>$ 3,526.02</td>
<td>-1.67%</td>
<td>20.91%</td>
</tr>
<tr>
<td>NVIDIA Corporation</td>
<td>$ 3,416.76B</td>
<td>-3.00%</td>
<td>181.33%</td>
</tr>
<tr>
<td>Microsoft Corporation</td>
<td>$ 3,255.49B</td>
<td>2.43%</td>
<td>17.08%</td>
</tr>
<tr>
<td>Alphabet Inc.</td>
<td>$ 2,237.83B</td>
<td>9.48%</td>
<td>29.92%</td>
</tr>
<tr>
<td>Amazon.com, Inc.</td>
<td>$ 2,035.74B</td>
<td>2.25%</td>
<td>27.66%</td>
</tr>
<tr>
<td>Meta Platforms, Inc.</td>
<td>$ 1,507.24B</td>
<td>2.37%</td>
<td>68.83%</td>
</tr>
<tr>
<td>Tesla, Inc.</td>
<td>$ 841.61B</td>
<td>20.28%</td>
<td>5.51%</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">10 ETFs Moving On Alphabet Rally </h3>
Alphabet's post-earnings rally has boosted several exchange-traded funds with significant exposure to the stock.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Weight %</th>
<th>1-day %chg</th>
</tr>
</thead>
<tbody>
<tr>
<td>Direxion Daily GOOGL Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GGLL#NYSE">GGLL</a>)</td>
<td>18.49%</td>
<td>+10.7%</td>
</tr>
<tr>
<td>iShares Global Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>)</td>
<td>12.61%</td>
<td>+1.8%</td>
</tr>
<tr>
<td>Fidelity MSCI Communication Services Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>)</td>
<td>12.40%</td>
<td>+1.8%</td>
</tr>
<tr>
<td>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>)</td>
<td>11.87%</td>
<td>+1.9%</td>
</tr>
<tr>
<td>Direxion Daily Magnificent 7 Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQU#NYSE">QQQU</a>)</td>
<td>10.73%</td>
<td>+2.5%</td>
</tr>
<tr>
<td>The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>10.70%</td>
<td>+1.5%</td>
</tr>
<tr>
<td>Kurv Technology Titans Select ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KQQQ#NYSE">KQQQ</a>)</td>
<td>8.96%</td>
<td>+1.1%</td>
</tr>
<tr>
<td>NYLI U.S. Large Cap Core ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LRND#NYSE">LRND</a>)</td>
<td>8.53%</td>
<td>+0.6%</td>
</tr>
<tr>
<td>Invesco AI and Next Gen Software ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGPT#NYSE">IGPT</a>)</td>
<td>8.12%</td>
<td>-0.8%</td>
</tr>
<tr>
<td>ProShares Ultra Communication Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LTL#NYSE">LTL</a>)</td>
<td>7.99%</td>
<td>+3.5%</td>
</tr>
</tbody>
</table>
</figure>
Read Next: 
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<li><a href="https://www.benzinga.com/general/biotech/24/10/41622207/eli-lilly-q3-earnings-mounjaro-sales-more-than-double-takes-2-98-billion-hit-to-profit-cuts-annua">Eli Lilly Q3 Earnings: Mounjaro Sales More Than Double, Takes $2.98 Billion Hit To Profit, Cuts Annual Outlook, Stock Tanks</a></li>
</ul>
Photo via Shutterstock.

Equities

Large Cap

Sector ETFs

Broad U.S. Equity ETFs

Markets

Movers

Tech

ETFs

AAPL

AMZN

FCOM

GGLL

GOOG

GOOGL

IGPT

iShares Trust S&P Global Telecommunications Sector Index Fund

KQQQ

IndexIQ ETF Trust IQ U.S. Large Cap R&D Leaders ETF

LRND

MSFT

NVDA

Direxion Shares ETF Trust Direxion Daily Concentrated Qs Bull 2X Shares

QQQU

TSLA

Alphabet's Earnings Rally Pushes Magnificent 7 Market Cap To Record $16.8 Trillion: 10 Tech-Heavy ETFs Moving Wednesday

A refusal by Google to grant an e-mobility app made by Enel SpA access to its<a href="https://www.benzinga.com/general/health-care/24/08/40657322/google-stock-an-ai-play-for-health-care-the-doctor-will-hear-you-now-and-diagnose-your-cough"> Android Auto platform </a>may violate competition laws, according to an adviser with the Court of Justice of the European Union (CJEU).
Italy&#8217;s antitrust regulator fined Google parent Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) 102 million euros ($113.2 million) in 2021 for blocking Enel&#8217;s Juice Pass on Android Auto, software that projects a smartphone screen onto a car&#8217;s infotainment screen, Reuters reported.
JuicePass is an app that lets users control their electric car chargers at any time from anywhere.
Google&#8217;s refusal abuses its dominant position by obstructing access by an app developed by a third-party operator to the platform, producing anti-competitive effects to the detriment of consumers, according to Court Advocate General Laila Medina.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/08/40618625/yelp-launches-antitrust-battle-against-google-after-federal-ruling-declares-search-giant-a-monop">Yelp Launches Antitrust Battle Against Google After Federal Ruling Declares Search Giant A Monopolist</a>
Google raised concerns over security and absence of a specific template in refusing to make JuicePass compatible with Android Auto. Google, which appealed to the Italian Council of State, said it has since taken action to resolve the issue.
&#8220;We note the opinion of the Advocate General and await the final decision of the Court. Since this case started, we have worked to add the template Enel asked for, and many similar apps are already available globally on Android Auto,&#8221; a Google spokesperson said.
CJEU judges, who will rule in the coming months, usually follow the majority of such non-binding opinions. 
Price Action: Alphabet (GOOG) gained 0.50% to close at $158.60 on Thursday.
A majority of exchange-traded funds that hold the stock also gained on Thursday.
<ul>
<li>T-Rex 2X Long Alphabet Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/GOOX#BATS">GOOX</a>) slipped 0.55%</li>
<li>Fidelity MSCI Communication Services Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>) ticked up 0.35%</li>
<li>IShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) went up 0.58%</li>
<li>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) gained 0.59%</li>
<li>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) edged up 0.29%</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/news/legal/24/08/40632500/googles-chances-of-getting-fined-in-search-adtech-lawsuits-relatively-low-analyst">Google&#8217;s Chances Of Fines In Search, AdTech Lawsuits &#8216;Relatively Low&#8217;: Analyst</a></li>
</ul>
Photo: Shutterstock

Government

Legal

Global

ETF Opportunities Trust T-Rex 2X Long Alphabet Daily Target ETF

GOOX

Google Blocks Android Auto Access, May Violate EU Rules, According To Court Adviser

Facebook users may have better control over using the <a href="https://www.benzinga.com/markets/equities/24/07/40056947/nvidia-amd-microsoft-meta-tesla-why-these-5-stocks-are-on-investors-radars-today">social media platform</a> if a college professor wins a lawsuit against its owner, Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>).
Ethan Zuckerman, a public policy professor at the University of Massachusetts-Amherst, filed a suit against the tech giant as part of a quest to release a browser extension called Unfollow Everything 2.0.
The extension, which is being developed by Zuckerman, would allow users to unfollow their friends, groups, and pages in one fell swoop, and, in doing so, to effectively turn off their newsfeed, according to court documents.
&#8220;Users who download the tool would be free to use the platform without the feed, or to curate the feed by refollowing only those friends and groups whose posts they really want to see,&#8221; the suit said.
Read Also: <a href="https://www.benzinga.com/general/social-media/24/07/39844744/stock-of-the-day-meta-how-to-profit-from-a-trading-range">Stock of the Day: Meta – How To Profit From A Trading Range</a>
Zuckerman is basing the suit on Section 230 of the Communications Decency Act, which gives users control over how they access the Internet.
&#8220;Through this provision, Congress intended to promote the development of filtering tools that enable users to curate their online experiences and avoid content they would rather not see,&#8221; the suit said.
Facebook already allows users to manually unfollow friends, groups, and pages one at a time, but &#8220;doing so for hundreds or even thousands of friends, groups, and pages is cumbersome and time-consuming,&#8221; the suit stated.
&#8220;Unfollow Everything 2.0 streamlines the process, while protecting user privacy,&#8221; it said.
Meta has filed a motion to dismiss the suit, according to a company spokesperson.
"This suit is baseless, and was filed over a hypothetical browser extension that has not even been built.&#8221;
Price Action: Meta has gained 0.77% to $530.79 as of Wednesday&#8217;s mid-day trading. Exchange-traded funds that cover the stock also trended upward.
<ul>
<li>Direxion Daily META Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/METU#NASDAQ">METU</a>) rose 1.52%</li>
<li>Fidelity MSCI Communication Services Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>) edged up 0.13%</li>
<li>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) went up 0.17%</li>
<li>IShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) gained 0.03%</li>
<li>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) picked up 0.04%</li>
</ul>
Read Now:
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<li><a href="https://www.benzinga.com/markets/cannabis/24/07/39653364/facebook-parent-company-meta-sued-by-former-arkansas-gov-huckabee-over-weed-product-ad-misuse">Facebook Parent Company Meta Sued By Former Arkansas Gov Huckabee Over Weed Product Ad Misuse</a></li>
</ul>

METU

Meta Blasts Professor Lawsuit Over User Control Of Facebook As 'Baseless'

On Tuesday, Alphabet Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google signed a strategic long-term <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40468092/energix-renewables-and-google-sign-a-strategic-renewable-energy-agreement" rel="noreferrer noopener">agreement with Energix Renewables</a>.
Under the agreement, Energix will develop 1.5GWp of solar projects by 2030, with the possibility of future expansion.
Energix will supply electricity and Renewable Energy Credits (RECs) from these projects to Google, which is also its&#8217; tax equity provider.
This partnership enhances Energix&#8217;s leadership in the U.S. renewable energy sector, especially within PJM. The parties have already signed the first two PPAs under this agreement.
The agreement ensures a market-adjusted energy price with downside protection, competitive REC pricing, and tax equity investments for Energix&#8217;s projects.
Asa (Asi) Levinger, CEO of the Energix Group, said, &#8220;This joint effort with Google not only strengthens our position in the PJM market but also opens up opportunities for future expansion into other power markets, we expect to deliver the 1.5GW in the next 2-3 years.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39314730/google-heats-up-green-goals-geothermal-deal-powers-nevada-data-centers" rel="noreferrer noopener">Google Heats Up Green Goals: Geothermal Deal Powers Nevada Data Centers</a>
Amanda Peterson Corio, Global Head of Data Center Energy, Google added, &#8220;There is no one-size-fits-all solution when it comes to decarbonizing our electricity grids and no one company can do it on their own. We are proud of our work with Energix Renewables to unlock new clean energy in PJM.&#8221;
&#8220;This type of collaboration is essential as we continue to progress towards our ambition to run on 24/7 carbon-free energy (CFE) on every grid where we operate every hour of every day.&#8221;
In June, Google purchased a stake in a Taiwanese solar power company. The deal involves&nbsp;New Green Power, a firm owned by BlackRock, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), and could see Google procure up<a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39567166/google-makes-major-solar-move-acquires-stake-in-taiwan-based-new-green-power-owned-by-blackrock" rel="noreferrer noopener"> to 300 megawatts of renewable energy</a>.
In August 2023, Google planned to license new sets&nbsp;of mapping data to companies to help build products around renewable energy and targets a revenue of <a target="_blank" href="https://www.benzinga.com/news/23/08/34083114/google-ventures-into-renewable-energy-mapping-targets-100m-revenue-with-new-api-offerings" rel="noreferrer noopener">up to $100 million in its first year</a>.
Investors can gain exposure to the GOOGL stock via&nbsp;IShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) and Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>).
Price Action: GOOG shares are down 0.95% at $167.35 premarket at the last check on Wednesday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/07/39615203/green-dreams-vs-ai-reality-googles-emissions-soar-amid-tech-expansion" target="_blank" rel="noreferrer noopener">Green Dreams vs. AI Reality: Google&#8217;s Emissions Soar Amid Tech Expansion</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company

News

Contracts

Google And Energix Partner On 1.5GW Solar Project

Google, which is owned tech giant Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), is required to face a dismissed <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39938868/google-analysts-see-upside-for-alphabet-stock-following-q2-earnings-as-generative-a">class action lawsuit</a> by Google Chrome users after U.S. appeals court decided to revive the case.
The suit was brought against Google for allegedly collecting Chrome users&#8217; personal information without their permission after deciding to not synchronize their browsers with their Google accounts, Reuters reported. The proposed class covers Chrome users since July 27, 2016.
The 9th U.S. Circuit Court of Appeals in San Francisco said the lower court judge who dismissed the suit should have assessed whether Chrome users consented to allow Google to collect their data as they browsed online.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40443852/google-parent-alphabet-is-a-top-large-cap-pick-for-2024-by-this-analyst-heres-why">Google Parent Alphabet Is A Top Large-Cap Pick For 2024 By This Analyst: Here&#8217;s Why</a>
Tuesday&#8217;s 3-0 decision comes after Google agreed last year to destroy billions of records to&nbsp;settle a suit claiming Google tracked people who thought they were browsing privately, even users browsing in Chrome&#8217;s &#8220;Incognito&#8221; mode.
Google did not immediately respond to Benzinga&#8217;s request for comment.
The lower court judge concluded Google&#8217;s general privacy policy allowing data collection governed because the company would have collected the plaintiffs&#8217; information regardless of which browsers they used.
But Circuit Judge Milan Smith called that focus misplaced in Tuesday&#8217;s decision.
&#8220;Here, Google had a general privacy disclosure yet promoted Chrome by suggesting that certain information would not be sent to Google unless a user turned on sync,&#8221; Smith wrote. &#8220;A reasonable user would not necessarily understand that they were consenting to the data collection at issue.&#8221;
The appeals court returned the case to U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, who dismissed it in December 2022.
Price Action: Alphabet gained 0.33% to close at $168.96 on Tuesday, while exchange-traded funds that track the stock trended downward for the most part.
<ul>
<li>T-Rex 2X Long Alphabet Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/GOOX#BATS">GOOX</a>) rose 0.73%</li>
<li>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) slipped 0.04%</li>
<li>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) declined 0.07%</li>
<li>IShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) went down 0.06%</li>
<li>Fidelity MSCI Communication Services Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>) dipped 0.15%</li>
</ul>
Read Now:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40387854/googles-potential-breakup-could-unlock-20-value-but-search-giant-likely-wont-pursue-split-volunt">Google&#8217;s Potential Breakup Could Unlock 20% Value, But Search Giant Likely Won&#8217;t Pursue Split Voluntarily, Says Top Analyst: &#8216;Probability…Is Exceptionally Low</a></li>
</ul>
Photo: Shutterstock

Alphabet's Google Faces Revived Chrome Lawsuit After Appeals Court Ruling

Trian Fund Management, an activist investor hedge fund co-founded by billionaire Nelson Peltz, still owns a piece of Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) after reportedly selling <a href="https://www.benzinga.com/markets/24/05/39078534/activist-investor-nelson-peltz-sells-entire-disney-stake-for-1b-after-losing-proxy-battle">its entire position</a> in late May, according to regulatory filings.
A quarterly 13-F report filed with the Securities and Exchange Commission on May 15 shows that New York-based Trian had 32.4 million shares in the company worth a total of $3.96 billion during the first quarter.
A Thursday filing revealed that Trian sold 29.7 million shares worth $3.69 billion at some point in the second quarter. But the hedge fund still owns almost 2.65 million shares worth nearly $263 million.
Trian reportedly sold <a href="https://www.benzinga.com/top-stories/24/05/39095549/the-rich-get-richer-how-one-billionaire-lost-but-still-made-hundreds-of-millions">its entire stake</a> in Disney at $120 a share as of May 29. The sale came after Peltz unsuccessfully tried to oust Disney CEO Bob Iger at an April shareholder meeting.
Read Also: <a href="https://www.benzinga.com/news/24/04/38104809/elon-musk-is-very-vocal-about-his-animosity-toward-bob-iger-but-his-bromance-with-nelson-peltz-is-go">Elon Musk&#8217;s Feud With Bob Iger Rages On, But His Bromance With Nelson Peltz Is Going Strong: &#8216;His Ideas Are Beyond Anything&#8230;&#8217;</a>
Investors voted against Peltz&#8217;s board nominees and moved to keep the entire board in place, including Iger. 
Peltz reportedly made $1 billion from the divestment, despite losing the activist battle against Disney.
The two 13-Fs also showed that Trian sold 539,884 shares of Ferguson Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FERG#NYSE">FERG</a>) that were worth more than $166 million during the second quarter. The deal left the firm with 1.95 million shares worth $378 million.
Trian also bought 3.55 million shares of UHaul for $78.6 million, 5.36 million shares of Solventum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOLV#NYSE">SOLV</a>) for $284 million and 470,000 shares of Rentokil Initial plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTO#NYSE">RTO</a>) for $13.9 million. It sold 1.22 million shares of Sysco Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYY#NYSE">SYY</a>) for $99.3 million.
Price Action: Disney gained 2.66% to $88.60 by Thursday&#8217;s late-afternoon trading. Exchange-traded funds that track the stock also trended upward.
<ul>
<li>First Trust S-Network Streaming &amp; Gaming ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNGE#NYSE">BNGE</a>) gained 1.34%</li>
<li>ALPS Global Travel Beneficiaries ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JRNY#NYSE">JRNY</a>) edged up 0.02%</li>
<li>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) ticked up 1.18%</li>
<li>iShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) went up 0.79%</li>
<li>AdvisorShares Gerber Kawasaki ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GK#NYSE">GK</a>) improved 1.72%</li>
</ul>
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/04/38096842/nelson-peltz-reflects-on-disney-proxy-battles-aftermath-i-was-very-surprised">Nelson Peltz Reflects On Disney Proxy Battle&#8217;s Aftermath: &#8216;I Was Very Surprised&#8217;</a></li>
</ul>

Entertainment

Gaming

BNGE

FERG

JRNY

SOLV

Disney Still Makes Up A Chunk Of Peltz's Trian Fund Despite $4B Exit, Records Show

Rafal Brzoska, a Polish billionaire who founded Polish locker company InPost, and his wife, Omenaa Mensah, plan to<a href="https://www.benzinga.com/news/24/08/40298698/mark-zuckerbergs-meta-platforms-triumphs-over-independent-presidential-candidate-robert-kennedy-jr-s"> file a lawsuit </a>against Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) for allegedly putting fake advertisements on Facebook and Instagram that feature his face.
Brzoska said they have not yet chosen a jurisdiction to file the planned suit, which also alleged that both social media sites are circulating false information about his wife, Reuters reported.
Brzoska&#8217;s legal action would be the latest attempt worldwide to hold Meta responsible for ads that consistently show up on the sites despite user complaints.
Meta said it removes false ads from its sites as it becomes aware of them and works with local authorities to deter scammers, but Brzoska said he told Meta about the issue in early July, but the company still has not fixed the problem.
&#8220;Scammers use every platform available to them to defraud people and constantly adapt to evade getting caught. Scam content breaks our rules and we remove it when we find it," Meta told Reuters.
"We also partner with businesses, local administrations and law enforcement to defeat these committed criminals."
Read Also: <a href="https://www.benzinga.com/markets/equities/24/08/40275791/meta-ceo-mark-zuckerberg-owns-two-of-the-biggest-social-media-platforms-in-the-world-he-now-thin">Meta CEO Mark Zuckerberg Owns Two Of The Biggest Social Media Platforms In The World. He Now Thinks This Experience On Phones Is &#8216;Anti-Social,&#8217; And Why He&#8217;s Focused On Ray-Ban Smart Glasses</a>
Brzoska told Reuters that he and his wife &#8220;are considering absolutely all scenarios&#8221; for jurisdiction and may carry out the suit in the U.S. if they are met with inaction in Europe.
He said they would demand in the suit that Meta stop benefiting from promoting content which violates their rights and donate to charity an amount of money matching the amount of ad revenues Meta received by spreading the false information.
Last week, Poland&#8217;s Personal Data Protection Office told Meta Platforms Ireland Limited to stop displaying false advertisements that used real data and images of Brzoska and his wife on Facebook and Instagram in Poland for three months.
Price Action: Meta gained 2.25% to $527.59 by Tuesday&#8217;s mid-day trading, while exchange-traded funds that track the company also picked up.
<ul>
<li>Direxion Daily META Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/METU#NASDAQ">METU</a>) gained 3.49%</li>
<li>Fidelity MSCI Communication Services Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>) edged up 1.12%</li>
<li>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) rose 1.16%</li>
<li>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) went up 0/96%</li>
<li>IShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) climbed 0.77%</li>
</ul>
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40110023/meta-platforms-in-rarified-air-with-scale-growth-profitability-12-analysts-size-up-">Meta Platforms &#8216;In Rarified Air&#8217; With Scale, Growth, Profitability: 12 Analysts Size Up Q2 Results, How &#8216;Zuck Won AI Bingo Before The Game Started&#8217;</a></li>
</ul>
Photo: Melnikov Dmitriy on Shutterstock

Polish Billionaire Plans To Sue Meta Platforms For Alleged Fake Advertisements

According to a report from the Wall Street Journal, Google&#39;s parent company Alphabet&nbsp;is reportedly in talks to acquire cyber security startup Wiz for $23 billion. This potential acquisition would be Google&#39;s largest ever and significantly boost its cloud computing capabilities.
The potential deal has put ETFs with a substantial allocation to Alphabet in focus. These include Communication Services Select Sector SPDR Fund (ARCA:XLC), Vanguard Communication Services ETF (ARCA:VOX), Fidelity MSCI Communication Services Index ETF (ARCA:FCOM), iShares Global Comm Services ETF (ARCA:IXP) and MicroSectors FANG+ ETN (ARCA:FNGS).
Wiz, an Israeli startup founded in 2020, is one of the fastest-growing start-ups in the cloud security arena and has been positioning itself as a platform provider versus leaders Palo Alto Networks, Zscaler (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zs#NASDAQ">ZS</a>) and others.
The potential deal highlights Alphabet&#39;s strategic focus on enhancing its cybersecurity portfolio amid increasing competition in the tech industry. It would boost Google&#39;s cloud-computing business, which lags behind Amazon.com unit Amazon Web Services as well as Microsoft (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>). Offering an all-in-one approach to cloud security, Wiz relies on ingesting data from various cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud, and then scanning it all for security risk factors.
Alphabet executives see the deal as a way to fortify Google&#39;s cloud business, which grew 28% to $9.57 billion in the first quarter of this year. However, an agreement hasn&#39;t been reached yet, and talks may fall apart.&nbsp;
<h3>ETFs in Focus</h3>
Let&#39;s delve into each ETF below:
Communication Services Select Sector SPDR Fund
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media &amp; services and has accumulated $19.6 billion in its asset base. It follows the Communication Services Select Sector Index and holds 22 stocks in its basket, with Alphabet Class A and C shares occupying the second and third position, respectively, with a combined 23.4% share. About 47% of the portfolio is allocated to interactive media &amp; services, while entertainment and media round off the next two.
Communication Services Select Sector SPDR Fund charges 9 bps in annual fees and trades in an average daily volume of 3.2 million shares. It has a Zacks ETF Rank #2 (Buy).
Vanguard Communication Services ETF
Vanguard Communication Services ETF targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 117 stocks in its basket, both Alphabet Class A and C shares take the second and third spots, with a total of 22.2% of the portfolio. Interactive media &amp; services is the top sector, accounting for 51.1% of the portfolio, while movies &amp; entertainment, cable &amp; satellite and integrated telecommunication services round off the next three.
Vanguard Communication Services ETF has AUM of $4.1 billion and trades in a good volume of 135,000 shares a day, on average. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Fidelity MSCI Communication Services Index ETF
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 108 stocks in its basket, with Alphabet Class A and C shares occupying the second and third positions, respectively, at a combined 22.1%.
Fidelity MSCI Communication Services Index ETF has amassed $1.2 billion in its asset base and trades in an average daily volume of 67,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Global Comm Services ETF
iShares Global Comm Services ETF provides global exposure to companies in media, entertainment, social media, search engine, video/gaming and telecommunication services by tracking the S&amp;P Global 1200 Communication Services 4.5/22.5/45 Capped Index. It holds 65 stocks in its basket, with Alphabet Class A and C shares taking the second and third spot, respectively, at 22.8%. Interactive media &amp; services dominates the fund&#39;s return at 51.8%, followed by integrated telecommunication services (17.7%).
iShares Global Comm Services ETF has amassed $443 million in its asset base while trading at an average daily volume of 20,000 shares. The expense ratio comes in at 0.42%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook.
MicroSectors FANG+ ETN
MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket, with Alphabet accounting for a 10.2% share.
MicroSectors FANG+ ETN has accumulated $383.6 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 124,000 shares and has a Zacks ETF Rank #3.
<a href="https://www.zacks.com/stock/news/2302684/google-to-reportedly-acquire-wiz-etfs-in-focus?cid=CS-BENZ-FT-etf_news_and_commentary-2302684">To read this article on Zacks.com click here.</a>

Analyst Ratings

Media

Trading Ideas

FNGS

Google to Reportedly Acquire Wiz: ETFs in Focus

Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) is planning to introduce a new cruise ship, scheduled to embark from Tokyo starting in fiscal 2028, marking the ninth vessel in <a href="https://www.benzinga.com/topic/disney">Disney&#8217;s expanding fleet.</a>
The new ship, inspired by the Wish, Disney&#8217;s largest vessel, is a collaborative effort with the Oriental Land Company, operator of Tokyo Disneyland. 
This initiative is part of a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34769783/disney-has-ample-runway-to-invest-grow-theme-parks-business-but-it-could-take-sever">10-year, $60 billion expansion of Disney&#8217;s theme parks</a> and cruise business, reported Reuters.
Currently, Disney operates five cruise ships and plans to introduce three more, including one launching from Singapore in 2025. 
The Tokyo-based ship will accommodate up to 4,000 passengers and is projected to generate approximately 100 billion yen ($621.77 million) in annual revenue within a few years of its debut.
&#8220;To set sail from Japan will make Disney vacations at sea more accessible to Japanese guests, who we know are some of our biggest fans,&#8221; said Thomas Mazloum, president of Disney Signature Experiences, according to Reuters.
The cruise industry is experiencing a resurgence post-COVID-19, with passenger numbers expected to reach 34.7 million this year, a 17% increase from 2019.
Also Read: <a href="https://www.benzinga.com/general/sports/24/07/39652518/disney-ceo-bob-iger-nears-purchase-of-womens-soccer-club-could-set-record-for-priciest-womens-spor">Disney CEO Bob Iger Nears Purchase Of Women&#8217;s Soccer Club, Could Set Record For Priciest Women&#8217;s Sports Team</a>
Josh D&#8217;Amaro, chairman of Disney Experiences, noted that the new ships would bring themed entertainment to regions distant from Disney&#8217;s theme parks, such as Melbourne and Vancouver. 
Disney aims to cater to families, a segment previously underserved in the cruise market.
Disney&#8217;s experiences business, encompassing parks and cruises, contributed over one-third of the company&#8217;s revenue in the March quarter and <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38675021/disney-direct-to-consumer-segment-profits-in-q2-operating-income-modestly-ahead-of-">nearly 60% of its operating income</a>. 
The company&#8217;s stock dipped in May after CFO Hugh Johnston warned of a &#8220;global moderation&#8221; in travel for the fiscal third quarter and other challenges, including higher wages and pre-opening costs for new cruise ships and the Lookout Cay vacation island.
The expansion of Disney&#8217;s cruise capacity could mitigate any <a href="https://www.benzinga.com/news/24/05/38851816/whats-going-on-with-disney-stock-today">decline in its domestic theme park business</a>. 
Dieney stock has gained more than 10% in the last 12 months. Investors can gain exposure to the stock via Monarch Blue Chips Core Index ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MBCC#BATS">MBCC</a>) and IShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>).
Price Action: DIS shares are trading lower by 1.11% at $96.29 at last check Tuesday.
Read Next: 
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<li><a href="https://www.benzinga.com/general/entertainment/24/06/39514678/disney-antitrust-suit-over-hulu-espn-ownership-moves-forward">Disney Antitrust Suit Over Hulu, ESPN Ownership Moves Forward</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Pixabay

Travel

General

MBCC

New Disney Cruise Ship To Sail From Tokyo In 2028: Japanese Guests 'Some Of Our Biggest Fans'

Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) is considering a paid version of its artificial intelligence-powered assistant, Meta AI.
The Facebook parent proposes to charge users for more advanced features of the assistant, the Information&nbsp;<a target="_blank" href="https://www.theinformation.com/articles/meta-is-working-on-a-paid-version-of-its-ai-assistant" rel="noreferrer noopener">cited</a>&nbsp;from an internal company post.
Meta rivals, including&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), backed by OpenAI and&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;Google, charge $20 monthly for their advanced versions.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/24081705/newplot-1-7.png" alt="" class="wp-image-354681" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/24081705/newplot-1-7.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/24081705/newplot-1-7-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
<a target="_blank" href="https://www.benzinga.com/news/24/04/38498886/microsoft-meta-and-alphabet-ramp-up-ai-investments-spend-over-32b-in-q1" rel="noreferrer noopener">Prior reports indicated</a>&nbsp;that Microsoft, Meta, and Alphabet earmarked over $32 billion in AI infrastructure in the first quarter of 2024.
Meta chief Mark Zuckerberg had confirmed its AI ambitions in a recent investor call.
Meta had launched a&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/36910511/meta-rolls-out-own-ai-chip-to-power-facebook-and-instagram-targets-cost-cuts-and-nvidia-independence" rel="noreferrer noopener">custom AI chip</a>&nbsp;for data centers to cut dependence on&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). The company touted its &#8216;Artemis&#8217; chip to save millions in energy costs.
Analysts noted&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38337954/metas-ai-edge-undervalued-assets-could-drive-surprising-gains-analysts-say" rel="noreferrer noopener">Meta as undervalued</a>, considering the&nbsp;potential from Reels and AI-driven ads. They also flagged Meta&#8217;s sizeable capex budget, internal AI supercomputer, in-house LLM, and custom AI chips.
Meta stock gained 87% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares Global Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) and&nbsp;Vanguard Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>).&nbsp;
Price Action: META shares traded higher by 1.96% at $474.93 at the last check on Friday.
Photo via Shutterstock

Meta Plans to Charge for Advanced AI Assistant Features

Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, ahead of its annual I/O developer conference in May, has confirmed layoffs across various vital teams such as Flutter, Dart, Python, and others, according to employee reports on social media.&nbsp;
The tech giant did not specify the teams, roles, or the number of individuals affected, TechCrunch&nbsp;<a target="_blank" href="https://techcrunch.com/2024/04/29/google-lays-off-staff-from-flutter-dart-python-weeks-before-its-developer-conference/" rel="noreferrer noopener">reports</a>.&nbsp;
Google spokesperson Alex García-Kummert explained that these changes aim to align resources with the company&#8217;s most significant product priorities, improve efficiency, and reduce bureaucracy.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38498886/microsoft-meta-and-alphabet-ramp-up-ai-investments-spend-over-32b-in-q1" rel="noreferrer noopener">Microsoft, Meta, and Alphabet Ramp Up AI Investments, Spend Over $32B in&nbsp;Q1</a>
The layoffs are part of regular organizational adjustments and are not company-wide. Google encourages those affected to apply for other available positions within the company.&nbsp;
Despite the cuts, Google PM Kevin Moore assured the Flutter development community that they&nbsp;are still focused&nbsp;on upcoming projects, including new updates for Flutter at the I/O conference.
The company has also filed a WARN notice in California, indicating the layoff of 50 employees across three locations in Sunnyvale.
In 2024,&nbsp;<a target="_blank" href="https://www.benzinga.com/startups/24/02/37397112/despite-booming-economy-and-record-profits-google-amazon-microsoft-and-more-lay-off-over-42-000-so-f" rel="noreferrer noopener">the tech sector</a>&nbsp;surpassed last year&#8217;s layoff figures, with over 42,324 workers losing their jobs.&nbsp;
This&nbsp;comes after nearly 263,000 tech layoffs in 2023, continuing the industry&#8217;s trend of job cuts.&nbsp;Major companies, including Google,&nbsp;Amazon.com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>),&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Discord,&nbsp;Salesforce Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NASDAQ">CRM</a>),&nbsp;eBay Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>), and&nbsp;PayPal Holdings Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>)&nbsp;have&nbsp;announced significant layoffs in January.
Several factors contribute to this seemingly contradictory situation. Firstly, the rapid advancement in AI technology requires substantial investments in new technologies, prompting companies to reallocate resources and reduce their workforce.
GOOG shares&nbsp;gained 56% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares Global&nbsp;Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) and&nbsp;The Communication Services Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>).
Price Action:&nbsp;GOOG shares traded lower by 0.07% at $167.78 on&nbsp;the last check Tuesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38312864/googles-strategic-job-cuts-reflect-ongoing-cost-cutting-measures-affecting-real-estate-and-finance-d" rel="noreferrer noopener">Google&#8217;s Strategic Job Cuts Reflect Ongoing Cost-Cutting Measures, Affecting Real Estate and Finance Departments</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

EBAY

PYPL

Google Announces Layoffs Across Key Teams As It Gears Up For I/O Developer Conference

On Apr 26, 2024, Google-parent Alphabet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) officially joined the prestigious $2 trillion club, making it the fourth U.S. company to achieve this market-capitalization milestone. On Apr 26, Alphabet&#39;s shares surged 10.2% in its most significant daily climb since July 2015, as reported by Dow Jones Market Data, as quoted on MarketWatch.
This substantial increase drove the stock to a new record high and pushed Alphabet&#39;s outstanding shares past the $2 trillion threshold for the first time. Among U.S. companies, only Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) and NVIDIA Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) have previously attained a valuation exceeding $2 trillion.
The scenario puts focus on Alphabet-heavy ETFs like iShares Global Comm Services ETF (ARCA:IXP), Communication Services Select Sector SPDR Fund (ARCA:XLC), Vanguard Communication Services ETF (ARCA:VOX) and Fidelity MSCI Communication Services Index ETF (ARCA:FCOM). These ETFs put 14% to 11% share in the stock. With Alphabet&#39;s upbeat prospects, the ETFs, too, should benefit.
<h3>Inside Q1 Earnings Snapshot</h3>
Alphabet&#39;s first-quarter 2024 earnings of $1.89 per share beat the Zacks Consensus Estimate by 26.8% and year-ago earnings by 61.5%. The tech giant posted revenues of $67.59 billion for the quarter ended March 2024. The top line surpassed the Zacks Consensus Estimate of $66.04 billion by 2.35%.
<h3>Solid Beat Across Most Main Segments</h3>
Revenues from the Google Services business increased 13.6% year over year to $70.4 billion, beating the Zacks Consensus Estimate of $69.04 billion. Under this business, search revenues from Google-owned sites increased 14.4% year over year to $46.16 billion, surpassing the Zacks Consensus Estimate of $44.7 billion.
YouTube&#39;s advertising revenues improved 20.9% year over year to $8.1 billion, topping the Zacks Consensus Estimate of $7.7 billion. Google Cloud revenues rose 28.4% year over year to $9.6 billion, beating the Zacks Consensus Estimate of $9.2 billion. However, network advertising revenues of $7.4 billion failed to meet the consensus mark of $7.7 billion.
<h3>Dividend Increase Signals Investor Reward</h3>
Alphabet announced that its board has sanctioned a cash dividend of $0.20 per share, payable on Jun 17, 2024, to shareholders recorded as of Jun 10. Moving ahead, Alphabet plans to uphold a quarterly cash dividend distribution policy.
<h3>Key Positives From Q1 Earnings</h3>
The company continues to spend big on its AI initiatives and technical infrastructure. Google Cloud Platform&#39;s growth accelerated in Q1 sequentially as well as year over year, indicating strong momentum. Management noted that more than 60% of funded GenAI startups and nearly 90% of GenAI unicorns are currently Google Cloud customers.
Meanwhile, YouTube Shorts monetization continues to improve.Over the last 12 months in the United States, the monetization rate of Shorts relative to in-stream viewing doubled. Management&#39;s focus on cost management is a positive.
Total operating margin rose about 700 bps year over year in Q1, indicating improved operational efficiencies. Core Google Services&#39; operating margin was around 40%, a multi-year high, as year-long cost management started to show effects.
<h3>Other Tailwinds That Support Near-Term Upside Potential</h3>
The stock hails from theZacks-defined Internet &ndash; Services industry, which currently ranks in the top 19% out of approximately 250 industry groups. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Historical research studies suggest that approximately half of a stock&#39;s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. Alphabet&#39;s underlying sector &ndash; Computer and Technology, also ranks in the top 38% out of 16 sectors. The stock has an upbeat VGM Score of &quot;B.&quot;
<h3>Why Tap Alphabet Via ETFs?</h3>
While Alphabet soared past earnings estimates, the company is still suffering from uncertainty about how to monetize conversational search (as highlighted by an analyst, as quoted on Guardian). Coming to competition on generative AI, both Microsoft and Amazon are making concerted efforts to bring advancement into OpenAI&#39;s ChatGPT and Amazon Bedrock, respectively. Plus, the company is facing increased regulatory scrutiny in the United States and overseas. T
As we all know that the ETF approach gives investors the option to diversify company-specific concertation risks. Investors should note that the above-mentioned ETFs &mdash; IXP, XLC, FCOM and VOX &mdash; have invested about 20% weight each in Meta META. Meta&#39;s performance thus affects these ETFs greatly.
Meta shares were hit hard last week due to the issuance of downbeat Q2 revenue guidance. Meta, which currently has the best VGM Score of &quot;A&quot; may start to recoup losses fast in the near term. Meta has about a 19.48% upside potential from the last traded price, based on the average target price offered by Wall Street analysts.
Hence, with the ETF approach, investors can diversify risks associated with GOOGL or META. In fact, both big tech stocks in one basket (especially with heavy weights) enhance the chances for the outperformance of those ETFs.
<a href="https://www.zacks.com/stock/news/2263823/alphabet-joins-2t-club-more-growth-likely-etfs-to-win?cid=CS-BENZ-FT-etf_news_and_commentary-2263823">To read this article on Zacks.com click here.</a>

Alphabet Joins $2T Club, More Growth Likely: ETFs to Win

Social media giant Meta Platforms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) is set to release first-quarter fiscal 2024 results on Apr 24 after market close. 
The stock has jumped 22% over the past three months and has outperformed the industry&#39;s decline of 7.8%. The outperformance might continue as Meta Platforms has a strong chance of beating estimates on earnings and saw a positive earnings revision activity, which is generally a precursor to an earnings beat. 
This has put the focus on ETFs &mdash; Communication Services Select Sector SPDR Fund (ARCA:XLC), Fidelity MSCI Communication Services Index ETF (ARCA:FCOM), Vanguard Communication Services ETF (ARCA:VOX), iShares Global Comm Services ETF (ARCA:IXP) and Global X Social Media Index ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/socl#NASDAQ">SOCL</a>) &mdash; with a substantial allocation to this social media giant.
<h3>Earnings Whispers</h3>
Meta Platforms has an Earnings ESP of +0.62% and a Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they&#39;re reported with our Earnings ESP Filter. 
Meta Platforms saw a positive earnings estimate revision of 5 cents over the past 30 days for the soon-to-be-reported quarter. Analysts increasing estimates right before earnings &mdash; with the most up-to-date information possible &mdash; is a good indicator for the stock. The current Zacks Consensus Estimate for the yet-to-be-reported quarter indicates substantial year-over-year earnings growth of 63.6%. Revenues are expected to increase 26.6%. Meta Platforms delivered an earnings surprise of 19.71%, on average, in the last four quarters. 
The stock belongs to a top-ranked Zacks Industry (top 22%) and has a VGM Score of B. 
Meta Platforms currently has an average brokerage recommendation&nbsp;of 1.28 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 46 brokerage firms. The current ABR compares to an ABR of 1.29 a month ago based on 45 recommendations. 
Of the 46 recommendations deriving the current ABR, 40 are Strong Buy and one is Buy. Strong Buy and Buy, respectively, account for 86.96% and 2.17% of all recommendations. A month ago, Strong Buy made up 86.67%, while Buy represented 2.22%. 
Based on short-term price targets offered by 40 analysts, the average price target for Meta Platforms comes to $523.35. The forecasts range from a low of $285.00 to a high of $610.00.
<h3>Projections</h3>
On the last earnings conference call, the world&#39;s largest social media platform guided revenues in the range of $34.5-$37 billion for the first quarter.
<h3>ETFs to Watch</h3>
Communication Services Select Sector SPDR Fund (XLC) 
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media &amp; services and has accumulated $17.5 billion in its asset base. It follows the Communication Services Select Sector Index and holds 22 stocks in its basket, with Meta Platforms occupying the top position at 23% share. About 48.7% of the portfolio is allocated to interactive media &amp; services, while entertainment and media round off the next two. 
Communication Services Select Sector SPDR Fund charges 9 bps in annual fees and trades in an average daily volume of 6 million shares. It has a Zacks ETF Rank #1. 
Fidelity MSCI Communication Services Index ETF (FCOM) 
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 110 stocks in its basket, with Meta Platforms occupying the top position at 27.8%. 
Fidelity MSCI Communication Services Index ETF has amassed $1 billion in its asset base and trades in an average daily volume of 106,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook. 
Vanguard Communication Services ETF (ETF:VOX) 
Vanguard Communication Services ETF also targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 116 stocks in its basket, Meta Platform takes the top spot with a 22.4% share. Interactive media &amp; services is the top sector, accounting for 51% of the portfolio, while movies &amp; entertainment, cable &amp; satellite, and integrated telecommunication services round off the next three. 
Vanguard Communication Services ETF has AUM of $4 billion and trades in a good volume of 148,000 shares a day, on average. It charges 10 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook. 
iShares Global Comm Services ETF (ETF:IXP)&nbsp; 
iShares Global Comm Services ETF provides global exposure to companies in media, entertainment, social media, search engine, video/gaming and telecommunication services by tracking the S&amp;P Global 1200 Communication Services 4.5/22.5/45 Capped Index. It holds 65 stocks in its basket, with Meta Platforms taking the top spot at 21.4% share. Interactive media &amp; services dominates the fund&#39;s return at 54.8%, followed by integrated telecommunication services (16.4%). 
iShares Global Comm Services ETF has amassed $268.3 million in its asset base while trading at an average daily volume of 12,000 shares. The expense ratio is 0.42%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook. 
Global X Social Media Index ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/socl#NASDAQ">SOCL</a>) 
Global X Social Media Index ETF provides investors access to social media companies around the world and has amassed $139.9 million in its asset base. It tracks the Solactive Social Media Total Return Index, holding 45 securities in the basket. Meta Platforms occupies the second position with 10.3% of the assets. 
Global X Social Media Index ETF charges 0.65% in annual fees and sees lower trading volumes of roughly 10,000 shares a day. The fund has a Zacks ETF Rank #3 with a High risk outlook.
<a href="https://www.zacks.com/stock/news/2259362/meta-platforms-etfs-to-buy-ahead-of-q1-earnings?cid=CS-BENZ-FT-etf_news_and_commentary-2259362">To read this article on Zacks.com click here.</a>

Earnings

SOCL

Meta Platforms ETFs to Buy Ahead of Q1 Earnings

Sundar Pichai,&nbsp;Google's&nbsp;CEO, has announced a significant restructuring of the company's leadership and operational divisions to accelerate its&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/12/36135857/why-is-google-parent-alphabet-stock-soaring-today" rel="noreferrer noopener">artificial intelligence (AI) development</a>.&nbsp;
This move is in response to criticisms that the company is lagging behind competitors like&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).&nbsp;
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19034024/newplot-19.png" alt="" class="wp-image-299375" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19034024/newplot-19.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/19034024/newplot-19-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The reorganization will see all AI-related teams, including the development of the Gemini chatbot, consolidated under the DeepMind division led by Demis Hassabis.
This consolidation encompasses research, model development, computing resources, and regulatory compliance teams, the Financial Times&nbsp;<a target="_blank" href="https://www.ft.com/content/26d39c4a-a6c7-4703-8184-271fde7f717e" rel="noreferrer noopener">reported</a>.
In a communication to employees, later shared in a blog post, Pichai detailed the consolidation of models, research, and responsible AI teams under Google DeepMind, the company's premier AI division.&nbsp;
The move aims to unify efforts on Google's AI models, Gemini and Gemma, by combining resources from Google Research and DeepMind into a single team.
Additionally, Pichai introduced a new unified Platform and Devices team, merging hardware, software, and AI initiatives, including projects like Android, Chrome, search, and photos headed by Rick Osterloh.&nbsp;
Bloomberg reports that the restructuring also includes the formation of a central Trust and Safety team dedicated to the rigorous testing and evaluation of AI systems.
This shakeup aims to streamline Google's structure, enhance its product innovation pace, and facilitate quicker decision-making processes.&nbsp;
Hiroshi Lockheimer will transition from overseeing Android to focusing on new projects, with Sameer Samat replacing him.
This overhaul marks the most significant changes at&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Google's parent company, since integrating its DeepMind and Google Brain AI units the previous year. It signifies a considerable expansion of Hassabis's influence over Google's AI endeavors.
Google seeks to overcome recent challenges, notably the controversy surrounding&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/12/36154624/whats-going-on-with-google-parent-alphabet-stock-friday" rel="noreferrer noopener">Gemini's image generation</a>.&nbsp;
It&nbsp;led to criticisms of its AI capabilities compared to rivals like OpenAI,&nbsp;Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Anthropic.&nbsp;
<a target="_blank" href="https://www.benzinga.com/news/24/04/38278168/googles-growth-ignited-by-ai-and-premium-video-ads-analyst-predicts-brighter-future" rel="noreferrer noopener">Analysts have flagged</a>&nbsp;Alphabet's strategic investments in cloud, hardware, and AI as&nbsp;key&nbsp;drivers for its multi-year growth. These investments counter the narratives around competitive threats, underscoring Google's strong foundation in its core businesses.&nbsp;
Alphabet's focus on AI and the continued evolution of CTV will foster a positive reassessment of its shares.
<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37830193/google-and-apples-potential-ai-partnership-sparks-analyst-optimism-could-reinforce-" rel="noreferrer noopener">Analysts also highlighted</a>&nbsp;the potential collaboration between&nbsp;Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Google&nbsp;could&nbsp;significantly enhance iOS features by incorporating advanced Gen-AI capabilities, including a more sophisticated version of Siri and new AI services like chatbots and image generators.
GOOGL stock gained 50% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) and&nbsp;IShares Global Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>).
Price Action:&nbsp;GOOGL shares closed higher by 0.35% at $156.01 on Thursday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38322252/amazon-analyst-predicts-lead-in-ai-revolution-with-strategic-cost-efficiency-and-tech-innovations" rel="noreferrer noopener">Amazon Analyst Predicts Lead in AI Revolution with Strategic Cost Efficiency and Tech Innovations</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Management

Google's DeepMind to Lead Unified AI Charge as Company Seeks to Outpace Microsoft

Alphabet Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;Google&nbsp;has commenced another round of employee layoffs, underscoring a strategic move towards cost reduction amidst the tech industry&#8217;s prevailing economic uncertainties.&nbsp;
The company confirmed that this latest series of job cuts is selective and not widespread across the organization, allowing those affected to pursue other internal opportunities.&nbsp;
Reuters reports that this action follows a pattern of reductions within Google and the broader tech and media sectors throughout the year, stoking concerns that downsizing trends might persist as firms navigate financial instability.
The spokesperson elaborated that these measures were part of efforts initiated in the latter half of 2023 to streamline operations, eliminate redundancy, and better align resources with the company&#8217;s primary product initiatives.&nbsp;
Reports indicate that the real estate and finance departments are among the sectors within Google experiencing these job cuts.&nbsp;
Functions within finance, such as Google&#8217;s treasury, business services, and revenue cash operations, have been identified explicitly as areas undergoing restructuring.&nbsp;
Furthermore, Google&#8217;s finance chief, Ruth Porat, told employees that the company&#8217;s restructuring strategy includes expanding its growth into international hubs like Bangalore, Mexico City, and Dublin.
Earlier in the year, Google&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36661058/google-announces-major-job-cuts-in-ad-sales-shifts-focus-to-ai-and-automation" rel="noreferrer noopener">reduced its workforce</a>&nbsp;across various departments, including engineering, hardware, and assistant teams, as part of its increased focus on developing its artificial intelligence capabilities.&nbsp;
<a target="_blank" href="https://www.benzinga.com/news/24/04/38278168/googles-growth-ignited-by-ai-and-premium-video-ads-analyst-predicts-brighter-future" rel="noreferrer noopener">Analysts flagged the company&#8217;s</a>&nbsp;sustained growth through its dominance in mobile search, YouTube, and programmatic advertising alongside strategic investments in cloud, hardware, and AI.&nbsp;
Analysts expect Alphabet&#8217;s shares to be re-evaluated as the market gains confidence in Google&#8217;s AI advancements and the potential for growth in the CTV sector.
In January 2023, Alphabet divulged&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36675299/google-announces-layoffs-at-youtube-and-other-divisions-to-enhance-operational-efficiency" rel="noreferrer noopener">plans to downsize</a>&nbsp;its workforce, comprising 6% of its global employees.
GOOG stock climbed over 49% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares Global Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>) and&nbsp;The Communication Services Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>).
Price Action:&nbsp;GOOG shares traded higher by 0.24% at $157.25 premarket on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Google's Strategic Job Cuts Reflect Ongoing Cost-Cutting Measures, Affecting Real Estate and Finance Departments

Late Tuesday,&nbsp;several&nbsp;Alphabet Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google employees were reportedly arrested and placed on administrative leave following staging 10-hour sit-ins at offices in New York and Sunnyvale, California, to protest the $1.2 billion cloud contract with Israel.
The pro-Palestinian employees, who are affiliated with a group called No Tech For Apartheid, posted several videos and live streams of the protests, which included the moment they were issued final warnings and arrested by local police for trespassing,&nbsp;<a target="_blank" href="https://nypost.com/2024/04/17/business/google-employees-arrested-placed-on-leave-after-protest-over-israel-contract/" rel="noreferrer noopener">reported&nbsp;</a>New York Post.
The protesters demanded the company&#8217;s withdrawal from the $1.2 billion &#8220;Project Nimbus&#8221; contract — in which Google Cloud and Amazon Web Services provide cloud-computing and artificial intelligence services for the Israeli government and military.
Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38278168/googles-growth-ignited-by-ai-and-premium-video-ads-analyst-predicts-brighter-future" rel="noreferrer noopener">Google&#8217;s Growth Ignited by AI and Premium Video Ads, Analyst Predicts Brighter Future</a>
Notably, the workers took over Google Cloud CEO Thomas Kurian&#8217;s office in Sunnyvale by wearing traditional Arab headscarves.
The police arrested a total of nine protesters, and the employees who participated in the protest are already facing disciplinary action.
As per the report, a Google spokesperson said the protests &#8220;were part of a longstanding campaign by a group of organizations and people who largely don&#8217;t work at Google.&#8221;
&#8220;Physically impeding other employees&#8217; work and preventing them from accessing our facilities is a clear violation of our policies, and we will investigate and take action.&#8221;&nbsp;
The report quoted an NYPD spokesperson, who said the protest &#8220;involved approximately 50 participants&#8221; in total and confirmed &#8220;four arrests were made for trespassing inside the Google building.&#8221;
Investors can gain exposure to the stock via&nbsp;ETF Opportunities Trust T-Rex 2X Long Alphabet Daily Target ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/GOOX#BATS">GOOX</a>) and&nbsp;IShares Global Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>).
Price Action: GOOG shares are up 0.94% at $157.46 on the last check Wednesday.
Photo via Shutterstock

Several Google Employees Arrested In Protest Over $1.2B Israel Contract: Report

Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google has committed $1 billion to enhance digital connectivity between the U.S. and Japan by introducing two new subsea cables, Proa and Taihei. 
What Happened: The new cables aim to bolster connectivity between the U.S. and Japan, and with several Pacific island nations and territories, Reuters reports.
This development follows a joint funding agreement between the U.S. and Australia last October to support subsea cable projects in the Pacific, indicating a broader collaborative effort with allies to create more secure and resilient networks.
The strategic importance of the Pacific region has escalated, with the U.S. and China vying for influence through various infrastructure and military partnerships.&nbsp;
Also Read: <a href="https://www.benzinga.com/news/23/03/31353916/meta-backed-undersea-cable-project-reportedly-delayed-by-china-over-spying-fears" target="_blank" rel="noreferrer noopener">Meta-Backed Undersea Cable Project Reportedly Delayed By China Over Spying Fears</a>
Why It Matters: This initiative aligns with President Joe Biden and Japanese Prime Minister Fumio Kishida&#8216;s efforts to strengthen ties between the two nations. Biden met with Kishida in the Oval Office at the White House on April 10.
Biden emphasized the significance of telecommunications for national security, advocating for U.S. leadership in the sector to control global information flows.
Google&#8217;s investment includes plans for the Proa cable to link the U.S., Japan, the Commonwealth of the Northern Mariana Islands (CNMI), and Guam.&nbsp;
The Taihei cable will connect the U.S., Japan, and Hawaii, and an additional interlink cable is planned to connect Hawaii, CNMI, and Guam.&nbsp;
Google is partnering with Japanese companies like KDDI and Arteria Networks, the Philippines-based Citadel Pacific, and the CNMI to enhance regional digital infrastructure.&nbsp;
These subsea cables, crucial for internet functionality, transmit 99% of the world&#8217;s data traffic.
A&nbsp;<a target="_blank" href="https://www.benzinga.com/news/21/08/22504711/google-facebook-announce-new-subsea-cable-apricot-to-improve-internet-connectivity-across-asia-pacif" rel="noreferrer noopener">March 2021 report</a>&nbsp;indicated that&nbsp;Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) is funding two new transpacific subsea cables connecting Singapore to the western coast of the U.S., with Google participating in one of the projects.&nbsp;
In 2024, Alphabet&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/02/36948285/alphabet-is-reportedly-eyeing-external-funding-for-gfiber-internet-expansion" rel="noreferrer noopener">reportedly collaborated with</a>&nbsp;the Chilean government to establish the first undersea cable connecting South America with the Asia Pacific region.
In 2023, Google launched its&nbsp;<a target="_blank" href="https://www.benzinga.com/news/22/10/29181028/google-makes-its-data-center-debut-in-japan-marking-its-third-in-the-continent" rel="noreferrer noopener">first data center</a>&nbsp;in Japan.
GOOGL stock gained over 48% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) and&nbsp;IShares Global Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>).
Price Action:&nbsp;GOOGL shares traded higher by 0.30% at $156.60 premarket on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock

Regulations

Google Invests $1B In Subsea Cables To Strengthen US-Japan Digital Connectivity

BofA&nbsp;analyst Justin Post reiterated a Buy rating on&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;Google&nbsp;with a price target of $173.
<a target="_blank" href="https://www.benzinga.com/news/24/03/37771653/apple-in-talks-with-google-to-license-gemini-ai-models-for-future-iphones-report" rel="noreferrer noopener">According to reports</a>,&nbsp;Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is discussing licensing the Gemini AI platform with Google for integration into the forthcoming iOS 18 software update.&nbsp;
This collaboration is set to enrich iOS with advanced Gen-AI features, including an enhanced version of Siri, Apple&#8217;s digital assistant, alongside its proprietary AI tools designed for local device operation; Apple&#8217;s potential partnership with Gemini would introduce more sophisticated generative AI services such as chatbots or image generators, to its ecosystem, the report added.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37817531/apples-ai-focus-could-boost-revenue-by-6-but-may-pose-this-near-term-headwind-says-" rel="noreferrer noopener">Apple&#8217;s AI Focus Could Boost Revenue By 6% But May Pose This Near-Term Headwind, Says Munster Amid Google Licensing Rumors</a>
The negotiation between Apple and Google is yet to be finalized, leaving room for Apple to turn to other AI providers like OpenAI or Anthropic. This move by Apple follows&nbsp;Samsung Electronics Co., Ltd.&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) announcement that its Galaxy G24 series smartphones will incorporate Gemini to power various AI features within apps such as text messaging, notes, voice recorder, and keyboard.
A deal between Google and Apple on AI could also have significant regulatory implications.
The analyst said it may present a positive development for Alphabet in the context of ongoing Department of Justice (DoJ) search distribution trials and Federal Trade Commission (FTC) AI inquiries.&nbsp;
He added that an agreement suggests that despite legal challenges, Apple and Google foresee continued collaboration in mobile technology licensing and that regulatory scrutiny won&#8217;t hinder AI licensing advancements.
The financial terms of the potential licensing deal have yet to be disclosed, but he expected that Apple would compensate Google with a technology licensing fee.&nbsp;
The analyst said such a deal would validate Google&#8217;s AI technology and reaffirm its status as a leading AI provider amid recent AI image generation controversies. Furthermore, he added that a successful agreement could signal enduring cooperation between Google and Apple, affecting their search distribution partnership.&nbsp;
Following the news, Google&#8217;s stock saw a significant uptick, emphasizing the positive market response to the potential collaboration.&nbsp;
However, there remains a risk that Apple may partner with other AI technology providers.
The GOOG stock gained over 44% last year. Investors can gain exposure to the stock via&nbsp;Vanguard Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) and&nbsp;IShares Global Comm Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>).
Price Action:&nbsp;GOOG shares traded lower by 0.42% at $147.86 on the last check Tuesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37787317/apples-partnership-with-google-the-missing-piece-in-tim-cooks-ai-strategy-says-wedb" rel="noreferrer noopener">Apple&#8217;s Partnership With Google The &#8216;Missing Piece&#8217; In Tim Cook&#8217;s AI Strategy, Says Wedbush&#8217;s Dan Ives</a>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Analyst Color

Price Target

Reiteration

SSNLF

Google And Apple's Potential AI Partnership Sparks Analyst Optimism, Could Reinforce Google's Leadership in AI Technology

The U.S. telecommunications industry is experiencing a volatile period following a detailed investigation conducted by the Wall Street Journal revealing that telecom companies, such as AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Telephone and Data Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>), Frontier Communications Parent Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) and others neglected more than 2,000 lead-containing cables across the country that were installed under the old Bell System <a href="https://www.benzinga.com/government/23/07/33158334/toxic-lead-covered-cables-from-at-t-verizon-and-other-telecoms-are-hazardous-wsj">and are now decaying.</a>
Environmental researchers, collaborating with Journal reporters, conducted tests on water and sediment samples from various locations. Shockingly, eight out of 12 tests showed elevated levels of lead contamination.
<h2 class="wp-block-heading">Lead-Cabling Controversy Hits Telecoms Stocks: Analysts React</h2>
The market impact was swift and severe. Analysts, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33256330/at-t-verizon-plummet-to-multidecade-lows-toxic-lead-investigation-sparks-telco-sell">Citigroup&#8217;s Michael Rollins</a>, wasted no time downgrading the affected stocks due to the environmental threat. 
On Monday, shares of AT&amp;T plummeted to their lowest value since 1993, dropping 7%. Although there was a slight recovery attempt on Tuesday&#8217;s opening, AT&amp;T ultimately closed flat. 
Verizon shares also experienced a significant decline, hitting their lowest point in over a decade on Monday with a 7.5% drop, followed by a marginal 2.4% rebound on Tuesday. TDS saw the most notable recovery on Tuesday, surging 9% after an 8.4% decline on Monday.
<h2 class="wp-block-heading">Telecom Companies Respond to Lead Cable Concerns:</h2>
In response to the Wall Street Journal&#8217;s investigation, the telecom companies and USTelecom, a group representing the broader industry, defended their practices. 
They emphasized that they provide safety training and protective gear to workers to handle lead properly. 
AT&amp;T said in a press release that it does not consider lead-sheathed cables to be a public health concern, citing scientific literature. The company also criticized the testing methodologies used by the newspaper and questioned the credibility of one of the testing companies due to a conflict of interest.
TDS acknowledged the presence of a limited amount of lead cabling in its network and said it is identifying the next steps to address the issue while complying with applicable laws. Verizon did not issue a PR on the matter.
<h2 class="wp-block-heading">5 ETFs With The Highest Exposure To Telecom Stocks</h2>
Among the exchange-traded funds that show a concentration of holdings in telecommunication stocks affected by the lead-cabling crisis, Benzinga found:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>T (weight %)</th>
<th>VZ (%)</th>
<th>TDS (%)</th>
<th>FYBR (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>)</td>
<td>4</td>
<td>11.8</td>
<td>0</td>
<td>2.5</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>)</td>
<td>2.59</td>
<td>3.55</td>
<td>0</td>
<td>2.3</td>
</tr>
<tr>
<td>SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)</td>
<td>3</td>
<td>3.1</td>
<td>3.5</td>
<td>3</td>
</tr>
<tr>
<td>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>)</td>
<td>3.8</td>
<td>4.4</td>
<td>0.1</td>
<td>0</td>
</tr>
<tr>
<td>Invesco S&amp;P 500 Equal Weight Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>)</td>
<td>4</td>
<td>4.1</td>
<td>0</td>
<td>0</td>
</tr>
</tbody>
</table>
</figure>
Also Read: <a href="https://www.benzinga.com/news/23/07/33253034/whats-going-on-with-verizon-shares">What&#8217;s Going On With Verizon Shares</a>
Photo: Shutterstock

Specialty ETFs

First Trust Morningstar Dividend Leaders Index Fund

FYBR

iShares Dow Jones US Telecommunications Sector Index Fund

RSPC

VLUE

Telecom Stocks Under Pressure As Toxic Lead Cable Concerns Discourage Buyers: 5 ETFs To Watch

Meta Platforms Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) is on a roller coaster&nbsp;revolving around opposition to its metaverse ambitions.
On March 2, Democratic senators urged Meta&nbsp;CEO Mark Zuckerberg to halt the release of its Horizon Worlds metaverse app to teens ages 13 to 17.
The senators highlighted a flaw in Messenger Kids that allowed users to bypass the app&#39;s age restrictions and Meta&#39;s failure to stop ads for tobacco, alcohol&nbsp;and eating disorders from targeting teens. The senators also emphasized data collection on face and eye movement, physiological damage&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/03/31188362/meta-chief-zuckerberg-faces-opposition-from-democrat-senators-over-metaverse-app-launch-for-teenager" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">and exposure to abusive behavior</a>.
The Meta Timeline:&nbsp;Meta has already spent billions&nbsp;building out the metaverse. In 2022 alone, the company spent $15.9 billion on its Reality Labs division.&nbsp;
On Monday, Meta reportedly slashed the price of&nbsp;Quest Pro&nbsp;to fend off competition from&nbsp;Apple Inc&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/03/31216195/meta-quest-pro-now-available-at-999-is-mark-zuckerberg-planning-ahead-for-apple-mr-headset" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">upcoming MR headset launch</a>.&nbsp;
The same day, it was reported that Meta iss planning to terminate&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/03/31230436/meta-layoffs-not-over-yet-zuckerberg-to-reportedly-finalize-plan-to-fire-thousands-more-this-week" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">thousands more employees based on financial targets</a>. In November, the&nbsp;Facebook&nbsp;and&nbsp;Instagram&nbsp;parent let go of 11,000 employees,&nbsp;or 13% of its workforce.
Arete analyst Richard Kramer downgraded&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/quote/META/analyst-ratings" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Meta Platforms to Sell from Neutral</a>&nbsp;on Monday.
Meta saw some redemption Tuesday, when the company higlighted its milestone of reaching 2 billion daily active users and issued an update on its&nbsp;progress in&nbsp;AI&nbsp;<a class="editor-rtfLink" href="https://about.fb.com/news/2023/03/facebook-today-and-tomorrow/" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">endeavors</a>.
The&nbsp;Communication Services Select Sector SPDR Fund&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlc#NYSE">XLC</a>),&nbsp;Fidelity MSCI Communication Services Index ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fcom#NYSE">FCOM</a>), and&nbsp;IShares Global Comm Services ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ixp#NYSE">IXP</a>) have an exposure of 12%-21% in the stock. The ETFs gained between 0.85% -1.74% last week.
META Price Action:&nbsp;Meta shares were trading down 1.61% at $181.99 Thursday afternoon.
Photo via Shutterstock.

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