ONE BIG THING<\/h3>\nGoogle just booked the biggest profit quarter in history\u2014and Wall Street hates it<\/b><\/h2>\n
Alphabet made history Wednesday with a quarterly profit that stretched into 12 figures for the first time in the search giant\u2019s history\u2014and perhaps for the first time in any company\u2019s history, <\/span>Fortune\u2019s <\/span><\/i>Eva Roytburg reports<\/span>. Alphabet, the parent company of Google, grew its bottom line by 298% year-over-year in the second quarter, totaling an astounding $112.1 billion in net income. Alphabet\u2019s Q2 revenue increased by a very impressive 24%, to $119.8 billion.<\/span><\/p>\n Investors hated it.\u00a0<\/span><\/p>\n The stock declined 1.46% at the close yesterday and then sold off another 3.72% overnight. Why? Traders were surprised by CEO Sundar Pichai\u2019s new guidance on future capex for 2026: $195 billion to $205 billion (it had previously been $180 billion to $190 billion). The company also did not describe in any detail how that spending generates revenues, particularly in relation to AI. \u201cThe 200 was the do-not-cross line,\u201d Brian Mulberry of Zacks Investment Management <\/span>told the WSJ<\/em><\/span>. \u201cYou can\u2019t be offloading this much cash and not talk about it.\u201d <\/span><\/p>\n <\/p>\n <\/span><\/p>\n When Larry Culp became the CEO of GE in 2018, the colossal conglomerate that Jack Welch built into the most valuable and admired enterprise in America teetered on the brink of collapse. The sprawling business model that competitors once envied had become a liability\u2014unwieldy, capital-intensive, and increasingly unable to compete in focused, fast-moving markets. At the time, GE\u2019s market cap measured just $96 billion, down over 80% from its peak in September 2000. Today, the valuations of the three ex-GE enterprises total $689 billion. <\/span>Culp told <\/span>Fortune\u2019s <\/span><\/i>Shawn Tully how he did it<\/span>.<\/span><\/p>\n Hasbro\u2019s growth strategy isn\u2019t just about kids anymore\u2014it\u2019s about \u2018kidults\u2019<\/span> – Phil Wahba<\/span><\/p>\n These shoes are everywhere. Can On topple Nike?<\/span> – Fortune Video<\/span><\/p>\n Jensen Huang made his $172 billion fortune on AI chips. His family\u2019s $75 million gift to Vanderbilt argues art decides what technology is for<\/span> – Sydney Lake<\/span><\/p>\n Adyen co-founder: Europe does not need more ambition. It needs to stop hiding it<\/span> – Thijn Lamers<\/span><\/p>\n Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. \u2018jock taxes<\/span>\u2019 – Joshua Hong<\/span><\/p>\n The U.S. and Iran<\/b> amped up the rhetoric and the shooting in their war over the last 24 hours. The price of Brent crude oil reacted: It\u2019s $98 per barrel this morning, up from a low of $93 yesterday.<\/span><\/p>\n Centcom <\/span>reported<\/span> a 12th straight night of bombing against Iran late last night. Targets included \u201cmaritime capabilities, missile and drone storage facilities, coastal surveillance sites, and air defense assets.\u201d<\/span><\/p>\n The Houthis,<\/b> Iran\u2019s Yemen-based proxy terror group, <\/span>struck two Saudi ships<\/span> in the Red Sea\u2014a move that sharply restricted traffic through the Bab al-Mandab Strait, which like the Strait of Hormuz is a major passageway for oil.\u00a0<\/span><\/p>\n President Trump<\/b> said<\/span> \u201cAny time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT.\u201d<\/span><\/p>\n Iranian Foreign Minister<\/b> Seyed Abbas Araghchi <\/span>responded<\/span>: \u201cOur defense doctrine is clear: eye for an eye. Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response. Those who contribute to such aggression, whatever the kind of support, will also be considered as legitimate targets.\u201d<\/span><\/p>\n The U.S. has ramped up its forces<\/b> in the Gulf over the past few days, deploying special-operations forces and jet fighters across the Middle East. Bombers based in the U.S. and U.K. are on high alert, the WSJ reported. The U.S. has also begun using a B-1 long-range bomber for the first time, <\/span>Axios<\/em> said<\/span>.<\/span><\/p>\n There is no exit in sight, analysts said.<\/b> It takes so few resources to deter shipping in both straits\u2014a few drone strikes will do it\u2014that it is enormously difficult for the U.S. to keep the waterways safe.<\/span><\/p>\n President Trump has pretty much lost the war against Iran, according to a strongly worded note from Andy Laperriere and his colleagues at Piper Sandler. \u201cIt borders on delusional to say that Trump needs to pursue diplomacy with Iran unless by that one really means end the war on Iran’s terms,\u201d he wrote. \u201cWhat kind of deal is Trump going to get? \u2026 The MOU [memorandum of understanding] itself was a near-total surrender to Iran. The only tangible benefit for the US was the opening of the Strait for 60 days. The US didn’t even get that. What’s on the table now?\u201d<\/span><\/p>\n \u201cIran is toying with Trump,\u201d Laperriere continues. The \u201cPresident thought he won at least two months of relief. And then Iran took it back. This is a classic hardball negotiating tactic that Trump is no doubt familiar with himself. You give a concession. Your opponent breathes a sigh of relief. And then you renege on it. It’s psychologically worse than if the concession had never been granted in the first place.\u201d<\/span><\/p>\n \u201c<\/b>Countries in the region have figured out which way the wind is blowing and some of them are betting Iran is going to control the Strait when this is all over,\u201d he concluded. There are reports that some countries have agreed to pay Iran for access to the Strait: \u201cLook for other countries to pay a ransom to Iran, whether by unfreezing funds, paying the toll to pass through the Strait, or some other means.\u201d<\/span><\/p>\n At Macquarie,<\/b> Thierry Wizman and Gareth Berry are also in a gloomy mood. The rising price of oil has the potential to sandbag the global economy and force rises in interest rates, they say: \u201cThe worries about global growth are well-placed, we think. The first round of the kinetic war between the US and Iran did result in a deterioration in the global growth data, as seen in the Citibank global growth surprise index. Since May, the surprise index has bounced back after expectations adjusted and oil prices peaked. But this is now a set-up for negative surprises if supply constraints begin to weigh on global growth again.\u201d<\/span><\/p>\n <\/p>\n <\/span><\/p>\n <\/p>\n <\/span><\/p>\n They got the message. After President Trump authorized strict treatment of illegal migrants both within the U.S. and at the borders, they stayed away. The CBO forecasts that there will be net immigration of 575,000 adults in 2026, which is 80% below the average of 3 million per year from 2022 to 2024, according to Samuel Tombs and Oliver Allen of Pantheon Macroeconomics. \u201cThe drop in immigration since Trump returned to office is dramatic,\u201d they say. \u201cLegal immigration has fallen, but irregular migration\u2014 undocumented people and those with temporary or limited legal rights\u2014has collapsed.\u201d<\/span><\/p>\n The amount of AI-related debt issued this year so far by the big tech hyperscalers, data center builders, and other linked companies. That already eclipses the full year issuance of $322 billion. The numbers include investment-grade, high-yield, and leveraged loan debt markets. \u201cNotably, only 40% of this year’s AI-related supply was directly issued by the hyperscalers,\u201d Goldman Sachs analyst Amanda Lynam said in a note.<\/span><\/p>\n Jes Staley to testify on Capitol Hill over ties to Jeffrey Epstein<\/span> – FT<\/span><\/p>\n Chip firm priced as China\u2019s most valuable company before its IPO brings scrutiny to crypto platform<\/span> – CNBC<\/span><\/p>\n Tesla’s push into AI and robotics is proving costly<\/span> – Axios<\/span><\/p>\n This AI tech billionaire just doubled his net worth. His ex asked for half<\/span> – WSJ<\/span><\/p>\n EasyJet profit falls 70% amid higher fuel bill, lower demand<\/span> – Bloomberg<\/span><\/p>\n Donald Trump Jr.\u2019s investment firm posts staggering returns of 200%<\/span> – NYT<\/span><\/p>\n New data suggests that drinking coffee could be doing real, long-term good for you, depending on how healthy you are and how much you drink. It\u2019s complicated, as <\/span>Fortune\u2019s<\/span><\/i> Orianna Rosa Royle reports<\/span>. According to the American Heart Association in its journal Circulation<\/em>, for most adults, up to five cups of caffeinated coffee a day\u2014around 400 mg of caffeine\u2014is safe and, for some people, may even be linked to a lower risk of several heart conditions.\u00a0<\/span><\/p>\n There\u2019s a catch that makes the exact count matter. In people with healthy blood pressure, drinking just one to three cups a day was associated with a <\/span>higher<\/span> risk of developing high blood pressure, while more than three cups was linked to a <\/span>lower<\/span> one\u2014one of several findings that suggested a single cup may not be doing much for you either way.\u00a0<\/span><\/p>\n Bottom line: Up to five cups a day is generally safe and carries no increased cardiovascular risk\u2014provided it\u2019s black, without added sugars or fillers. Two to four cups was tied to a <\/span>lower<\/span> risk of heart disease, heart failure, and stroke. Go past that, and the risk of heart failure starts to climb.<\/span><\/p>\n<\/div>\n #Google #posted #biggest #quarterly #profit #ever112 #billionand #Wall #Street #punishing<\/p>\n","protected":false},"excerpt":{"rendered":" \ud83d\udcec Would you prefer to receive … <\/p>\n","protected":false},"author":1,"featured_media":2029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[678,54,4004,515,4003,516,4001,636,456,166,381,4002,448,4005,2581,369,2048],"class_list":["post-2028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-alphabet","tag-biggest","tag-billionand","tag-economics","tag-ever112","tag-fortune-500-digest-weekday","tag-general-electric","tag-google","tag-iran","tag-markets","tag-news","tag-posted","tag-profit","tag-punishing","tag-quarterly","tag-street","tag-wall"],"yoast_head":"\nTHE MARKETS<\/h3>\n
U.S. futures and European markets slide as oil hits $98 per barrel<\/b><\/h2>\n
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<\/div>\nGENERAL DYSPEPTIC<\/h3>\n
GE was a mess. Larry Culp fixed it. Here\u2019s how.<\/b><\/h2>\n
MORE FROM FORTUNE<\/h3>\n
IRAN<\/h3>\n
The war is getting worse<\/b><\/h2>\n
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\u2018Iran is toying with Trump,\u2019 Piper Sandler analyst says, and Gulf countries are betting Iran will end up in control of the Strait of Hormuz\u00a0<\/b><\/h2>\n
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<\/div>\nCHART OF THE DAY<\/h3>\n
Trump reduced immigration into the U.S. by 80%<\/b><\/h2>\n
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<\/div>\nNUMBER OF THE DAY: AI DEBT<\/h3>\n
$489 billion<\/b><\/h2>\n
THE FRONT PAGES TODAY<\/h3>\n
ONE MORE THING<\/h3>\n
Drinking the \u2018right\u2019 amount of coffee is incredibly complicated\u00a0<\/b><\/h2>\n