Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google’s subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google’s cloud computing platform, or GCP, accounts for roughly 10% of Alphabet’s revenue with the firm’s investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

The S&P 500 just delivered its third consecutive monthly decline in 2025 (-0.8% in April, before dividends). But if historical patterns hold true, the negative trend may end in May. The stock market typically rises in May, on average 1.0% and with a 71% winning percentage. We note that market returns in May have exceeded 5% on six occasions since 1980, including a 9.2% gain in 2000; and 2024 was not bad, at 3.9%. But there have been some clunkers in May, including 2019 (a painful 6.6% loss), 2010 (an 8.2% value wipeout), 2012 (down 6.0%) and 1984 (down 5.9%). May starts off as a busy month on Wall Street, as companies report first-quarter earnings, the nonfarm payrolls report is released, and the Federal Reserve holds a meeting. But once the retailers wrap up their results in the middle of the month, investors will be left to ponder trade-war prospects, inflation trends, future Federal Reserve activity, the risk of recession, and the long Memorial Day weekend. Looking ahead, our forecast for stocks in 2025 has been bullish, as we have expected the economy to grow (check), interest rates to decline (check), and earnings to expand at a double-digit rate (check). The wild card has been the White House. There's still time for a market recovery if the Trump administration will simply let the markets figure the way forward. In any event, given the volatility in the markets, we recommend an ongoing focus on quality stocks with strong earnings trends.

The S&P 500 just delivered its third consecutive monthly decline in 2025 (-2.2% in April, before dividends). But if historical patterns hold true, the negative trend may end in May. The stock market typically rises in May, on average 1.0% and with a 71% winning percentage. We note that market returns in May have exceeded 5% on six occasions since 1980, including a 9.2% gain in 2000; and 2024 was not bad, at 3.9%. But there have been some clunkers in May, including 2019 (a painful 6.6% loss), 2010 (an 8.2% value wipeout), 2012 (down 6.0%) and 1984 (down 5.9%). May starts off as a busy month on Wall Street, as companies report first-quarter earnings, the nonfarm payrolls report is released, and the Federal Reserve holds a meeting. But once the retailers wrap up their results in the middle of the month, investors will be left to ponder trade-war prospects, inflation trends, future Federal Reserve activity, the risk of recession, and the long Memorial Day weekend. Looking ahead, our forecast for stocks in 2023 has been bullish, as we have expected the economy to grow (check), interest rates to decline (check), and earnings to expand at a double-digit rate (check). The wild card has been the White House. There's still time for a market recovery if the Trump administration will simply let the markets figure the way forward. In any event, given the volatility in the markets, we recommend an ongoing focus on quality stocks with strong earnings trends.

Alphabet, formerly called Google, maintains the largest online index of websites accessible through automated search technology. It generates revenue through online advertising, cloud services, and hardware. Google is now an operating segment of Alphabet. The company was founded in 1998 by Sergey Brin and Larry Page and went public in 2004. Google's AdWords is an auction-based program that lets businesses display ads along with particular search results. Google's AdSense program enables websites in the company's network to serve targeted ads, based on search terms or web content, from AdWords advertisers. Most of the revenue generated through AdSense is shared with network partners. In addition, Alphabet owns YouTube.com, the web-based video site. It has also expanded into mobile telephony with its Android smartphone operating system and into public cloud services. About 52% of Alphabet's revenue is generated outside the U.S. On April 3, 2014, Alphabet's new nonvoting class C shares began trading under the ticker GOOG. Alphabet's publicly held class A shares switched to the ticker GOOGL. The effect of the new class C share issuance was a non-economic 2-for-1 stock split. On July 15, 2022, Alphabet executed a 20-for-1 stock split on its Class A, Class B and Class C stock. The stock split had no impact on the economic value of GOOGL shares.