After Nasdaq (QQQ) fell by 1.51% in mid-week trade, which added to its 4.3% weekly loss, Alphabet (GOOG) might reverse the excessive bearishness.
Google reported $2.82 in earnings per share on revenue of $113.83 billion. Both metrics beat expectations. Google Services reported revenue growing by 14% Y/Y to $95.9 billion. Its traditional business, Google Search (among other things), contributed to that unit by growing 17%.
CEO Sundar Pichai said that Gemini 3 marked a major milestone. Usage flourished, where Gemini processed over 10 billion tokens per minute. In 2026, capital investments will be in the range of $175 to $185 billion.
Alphabet’s strong growth might continue to put pressure on software stocks. SaaS, or software sold as subscriptions, risks serious pricing pressures. Adobe Systems (ADBE), for example, charges $199/month for Firefly for customers who do not sign up for an annual plan. Corporations might cut costs drastically by forcing staff to use Gemini’s nano banana pro instead.
In mid-week trade, Intuit (INTU), Salesforce (CRM), Cadence Design Systems (CDNS), Adobe, and Workday (WDAY) traded higher. Datadog (DDOG) and Uber (UBER) fell by 3.3% and 5.15%, respectively.
Bearishness in the magnificent seven worsened. Shares of Meta Platforms (META) lost 3.3% while Tesla (TSLA) dropped by 3.83%. After markets close today, watch Amazon (AMZN). It reports quarterly results next.
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