NEW YORK — Alphabet Inc. Class C shares edged lower in early trading Wednesday, dipping 0.47 percent to $329.01 as investors paused ahead of the company’s first-quarter earnings later this month while weighing heavy artificial intelligence investments against broader market optimism over potential de-escalation in the Middle East.
GOOG Dips 0.5% as Alphabet Awaits Q1 Earnings Amid AI Spending and Iran Relief Rally
At 9:41 a.m. EDT, GOOG had fallen $1.57 from Tuesday’s close. The modest decline contrasted with gains in the broader Dow Jones Industrial Average, which rose on hopes that President Donald Trump’s comments signaling the Iran conflict is “very close to over” could ease energy price pressures and support global advertising spending.
Alphabet, parent of Google, has been navigating a complex environment. Strong momentum in Google Cloud and Gemini AI advancements have driven optimism, yet concerns over soaring capital expenditures — projected between $175 billion and $185 billion for 2026 — continue to pressure near-term margins and free cash flow.
Earnings Preview
Alphabet is scheduled to report first-quarter 2026 results after the market close on April 29. Analysts expect revenue around $106-107 billion and earnings per share near $2.60, building on the robust Q4 2025 performance that saw revenue hit $113.8 billion and EPS reach $2.82.
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Google Cloud remains a standout, with recent quarters showing accelerating growth fueled by AI infrastructure demand from hyperscalers. The segment’s backlog has swelled, reflecting strong enterprise adoption of Gemini-powered tools. However, the massive AI-related buildout has raised questions about profitability timelines.
Search advertising, still the company’s core engine, benefits from AI Overviews and Gemini integration, though shifts in user behavior and competition from OpenAI and others create ongoing dynamics. YouTube advertising and subscription services also provide diversified revenue streams.
AI Leadership and Gemini Momentum
Alphabet has aggressively pushed Gemini models throughout 2026. Recent updates have expanded capabilities, with user growth reaching hundreds of millions and deeper integration across Google products. The company’s heavy CapEx reflects ambitions to maintain leadership in the generative AI race, including data centers, custom chips and model training.
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While some investors worry about the short-term financial burden, others see it as necessary spending to capture long-term market share. Google Cloud’s growth rate is expected to be a key focus on the upcoming earnings call, with analysts viewing it as the primary driver for potential stock upside.
Market and Geopolitical Context
Wednesday’s trading comes as markets broadly advance on Middle East developments. Reduced fears over prolonged disruption to oil supplies from the Strait of Hormuz have lifted risk assets, benefiting advertising-dependent companies like Alphabet. Digital ad spending tends to correlate with economic confidence and corporate budgets.
Alphabet shares have shown resilience in 2026 despite volatility tied to AI spending concerns and earlier geopolitical shocks. The stock has traded in a range, pulling back from highs earlier in the year amid broader tech sector rotation but remaining well above longer-term averages.
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Regulatory and Antitrust Backdrop
Ongoing U.S. Department of Justice actions and potential appeals continue to loom over the company. Any resolution or clarity on remedies could influence investor sentiment, though the immediate focus remains on operational execution and AI progress.
Internationally, Alphabet navigates varying regulatory environments, from European privacy rules to competition probes in multiple jurisdictions. These factors add layers of uncertainty but have not derailed core business growth.
Analyst Perspectives
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Wall Street remains generally bullish on Alphabet’s long-term prospects. Several firms highlight the company’s undervaluation relative to growth potential in cloud and AI, with price targets often exceeding current levels. However, execution on cost management and returns on AI investments will be closely scrutinized.
Some analysts recommend buying ahead of earnings, citing strong fundamentals and the possibility of positive surprises in cloud metrics. Others advise caution given high expectations and the risk of margin compression from elevated spending.
Broader Tech Sector Outlook
Alphabet’s performance mirrors trends across big tech. Peers face similar pressures balancing innovation spending with profitability. Yet demand for AI infrastructure remains robust, supporting valuations even as near-term costs mount.
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Retail and institutional investors continue monitoring Alphabet as a core holding for exposure to digital advertising, cloud computing and artificial intelligence — three secular growth areas expected to shape the economy for years.
Looking Ahead
As the April 29 earnings approach, investors will seek details on cloud growth trajectory, Gemini adoption metrics, advertising trends and updated guidance on capital expenditures. Management’s tone on balancing growth and efficiency could sway sentiment significantly.
In the meantime, external factors like Middle East developments, Federal Reserve signals and overall market risk appetite will influence trading. Wednesday’s slight pullback appears more like profit-taking or positioning than a fundamental shift.
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Alphabet’s massive scale, financial strength and technological moat position it well for continued leadership. Whether the current AI investment cycle delivers outsized returns remains the central debate, but the company’s track record of innovation suggests it is well-equipped to navigate the challenges.
For now, the modest decline in GOOG shares reflects a cautious pause in an otherwise optimistic market environment. As global tensions ease and earnings season intensifies, Alphabet stands ready to demonstrate why it remains one of the most important technology franchises in the world.
The S&P 500 and Nasdaq notched record high closes on Tuesday, lifted by Intel and other AI-related stocks, as a U.S.-Iran ceasefire held firm and investors focused on strong quarterly earnings. Washington said on Tuesday its ceasefire with Iran was intact, allaying worries that attempts by both sides to assert control over the Strait of Hormuz would escalate hostilities.
Investors focused on AI-related companies, with the Philadelphia SE Semiconductor index surging to a record high.
Chip designer AMD rallied ahead of its quarterly report after the bell, with analysts expecting a 33% surge in revenue.
S&P 500 companies are on track to post aggregate earnings growth of 28% year-over-year for the first quarter, the strongest quarterly profit growth since 2021, according to Tajinder Dhillon, head of earnings research at LSEG.
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Wall Street’s AI heavyweights account for much of that optimism.
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“Markets are following fundamentals. Earnings are coming in pretty strong, and the expectation is that will carry forward into the rest of the year,” said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management in Minneapolis. “Business spending remains strong, whether it’s on AI or other productivity tools, and consumers continue to spend,” Hainlin said. According to preliminary data, the S&P 500 gained 58.72 points, or 0.82%, to end at 7,259.47 points, while the Nasdaq Composite gained 259.06 points, or 1.03%, to 25,326.51. The Dow Jones Industrial Average rose 354.85 points, or 0.73%, to 49,296.75.
Data on Tuesday showed U.S. job openings fell to 6.866 million in March, slightly above the 6.835 million estimate. That reinforced the view that labor market resilience could give the central bank room to keep interest rates higher for longer.
The Institute for Supply Management’s Non-Manufacturing Purchasing Managers’ Index for April came in at 53.6, narrowly missing the estimate of 53.7, according to economists polled by Reuters. Grain trader Archer-Daniels-Midland rose after reporting better-than-expected first-quarter profit on higher margins. DuPont rallied after the industrial materials maker lifted its annual profit forecast. Shares of Pinterest soared after the image-sharing platform forecast second-quarter revenue above analysts’ estimates.
MINNEAPOLIS — Minnesota Timberwolves superstar Anthony Edwards has made remarkable progress in his recovery from a left knee hyperextension and bone bruise, with reports confirming he is now running at about three-quarters speed and has already returned to on-court basketball activities well ahead of initial timelines.
Edwards suffered the injury in Game 4 of the first-round series against the Denver Nuggets in late April. Initial projections called for a multi-week absence, potentially sidelining him for the early portion of the Western Conference semifinals. However, aggressive rehabilitation, including around-the-clock treatment and hyperbaric chamber sessions, has accelerated his return.
As of early May 2026, Edwards has been cleared for full basketball activities and was listed as questionable before Game 1 against the San Antonio Spurs. Multiple reports confirm he participated in pregame warmups and entered the contest off the bench, delivering 18 points in a Timberwolves victory despite playing under a minutes restriction.
Injury Details and Rapid Recovery
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The injury involved a hyperextension of the left knee with an accompanying bone bruise. Edwards also manages ongoing right knee soreness described as runner’s knee. Team medical staff initially projected a minimum two-week absence, but Edwards pushed aggressively through rehabilitation protocols.
Timberwolves vice president of medical and performance David Hines noted the timeline was fluid, with Edwards showing “unforeseen progress” in recent days. By early May, he was spotted taking jump shots and performing full-court running at approximately 75% intensity during practice sessions.
Coach Chris Finch confirmed Edwards’ availability for Game 1, describing the decision as a joint one between player, medical staff and coaching. Edwards entered the game in the first quarter and contributed meaningfully despite not being at full strength.
Impact on Timberwolves Playoff Run
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Edwards’ quick return provides a significant boost to Minnesota as it faces Victor Wembanyama and the Spurs in the Western Conference semifinals. The Timberwolves advanced past the Nuggets without him in the final two games of the first round, but his presence elevates their championship aspirations.
Even on a minutes restriction, Edwards’ scoring punch and defensive versatility remain critical. His willingness to play through discomfort underscores his competitive drive and importance to the franchise.
Medical and Expert Perspectives
Sports medicine specialists note that bone bruises can vary widely in recovery time. Edwards’ youth, elite athleticism and access to advanced treatments likely contributed to his faster-than-expected progress. However, experts caution against pushing too aggressively, as re-injury risks remain elevated in the playoffs.
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The Timberwolves medical team has monitored him closely, using pain management, mobility metrics and functional strength tests to guide clearance. Edwards has communicated optimism to teammates, expressing his desire to contribute as soon as possible.
Fan and Media Reaction
Social media erupted with excitement over Edwards’ return. Clips of his Game 1 performance quickly went viral, with fans praising his toughness. Hashtags related to his recovery and highlights trended as supporters celebrated the star’s resilience.
Analysts highlight Edwards’ history of beating recovery timelines, drawing comparisons to past instances where he returned ahead of schedule. His ability to perform at a high level even while managing bilateral knee issues has drawn admiration across the league.
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What’s Next for Edwards
The Timberwolves will continue monitoring Edwards’ workload closely in the series against San Antonio. Expect gradual increases in minutes as he builds confidence and conditioning. Full unrestricted play may take additional games, but his presence alone alters the dynamics of the matchup.
Upcoming updates will focus on how his knee responds to game action and whether any setbacks occur. The organization remains optimistic but cautious, prioritizing long-term health during a deep playoff run.
Edwards’ rapid recovery adds another chapter to his rising superstar narrative. From high draft pick to playoff hero, his toughness and work ethic continue impressing observers. As the Western Conference semifinals unfold, all eyes will remain on the dynamic guard and his ability to perform while managing lingering knee concerns.
MSc in Finance. Long-term horizon investor mostly with 2-5 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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The LUCID logo is shown at the LA Auto show “AutoMobility LA” in Los Angeles, California, U.S. Nov. 20, 2025.
Mike Blake | Reuters
DETROIT — Lucid Group plans to take actions to better align its production with customer demand for its luxury all-electric vehicles, the company said Tuesday.
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The EV manufacturer said it needs to lower its “elevated inventory” of vehicles, which for automakers has historically meant lowering or idling vehicle production.
A company spokesman on Tuesday told CNBC that there is currently no plan to idle its sole U.S. plant in Arizona, but declined to reconfirm the company’s prior production guidance of between 25,000 and 27,000 units.
Lucid, in a release Tuesday, said it will take “further steps to align production with anticipated deliveries and customer demand.” The company did not include the guidance in its release.
The company has produced roughly 3,200 more vehicles than it has sold since 2024, according to its annual production and deliveries. That includes a difference of roughly 2,000 units last year and 2,400 vehicles during the first quarter of 2026.
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“We ended the quarter with elevated inventory that we expect to convert to revenue and cash as deliveries normalize, while maintaining alignment between production and sales cadence. Our focus is on disciplined execution — driving structural cost improvements, managing capital efficiently, and improving operating leverage as we scale,” Lucid CFO Taoufiq Boussaid said in a statement.
The comments came as the company reported its first-quarter results that were in line with preliminary results released by the company a month ago, but still significantly missed Wall Street’s expectations.
Here’s how the company performed in the first quarter compared with average estimates compiled by LSEG:
Loss per share: $3.46 vs. a loss of $2.64 expected
Revenue: $282.5 million vs. $440.4 million expected
The company’s revenue increased roughly 20% year-over-year but was far lower than the 87.4% jump analysts were expecting, according to LSEG.
Lucid produced 5,500 vehicles and delivered 3,093 vehicles in the first quarter of 2026.
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The all-electric vehicle maker said a seat supplier issue “significantly affected” deliveries of its crucial Lucid Gravity SUV during the quarter.
Several other automakers have said high gas prices caused by the war in Iran have led to increased interest in all-electric vehicles following a dearth in demand after the Trump administration ended consumer incentives last year of up to $7,500 for the purchase of an EV.
Lucid reported a 144% increase in North America order intake from February to March.
Gibson Energy Inc. (GEI:CA) Shareholder/Analyst Call May 5, 2026 12:00 PM EDT
Company Participants
James Estey Nathalie Wyman Tara Hingley Riley Hicks – Senior VP & CFO Colin Gair Jon Ozirny – VP of Legal & General Counsel Cody Johnson Darcy Smith Chris Garcia Curtis Philippon – CEO, President & Non-Independent Director
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Presentation
James Estey
Okay. We’re going to start early. Good morning, and welcome to the Annual Shareholder Meeting of Gibson Energy. My name is Jim Estey, and I am the Chairman of Gibson Board. And in accordance with the bylaws of the company, I will act as chair of the meeting. Given the importance of safety within Gibson, and our culture, we will start today this meeting with a safety moment from Nathalie Wyman. That will be followed by a land acknowledgment from Tara Hingley and an introduction of the directors and officers who have joined us today. Following completion of these preliminary matters, we will then move into the formal part of the meeting during which you, our shareholders or duly appointed proxyholders will vote on the 3 matters set forth in the management information circular.
Finally, our President and CEO, Curtis Philippon, will provide a company update, which will be followed by question-and-answer period, which you, shareholders and proxyholders are invited to ask questions of the directors and the executive management. At the conclusion of our program, the directors and officers and senior management will be available in the room to answer further questions you may have. I will now call on Nathalie to provide a safety moment.
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Nathalie Wyman
Thank you, Mr. Chair. As we begin today, I would like to take a moment to acknowledge that Canadian Mental Health Week began yesterday and continues until Sunday, May 10. This year, Mental Health Week recognizes the role we all play in supporting mental health through connection. At Gibson, Mission Zero is
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