BeInCrypto • October 6th 2026, 4:05 AM
Dan Niles Backs Alphabet and Meta as Google Cloud Grows Over 80%
Key Summary
Dan Niles, founder of Niles Investment Management, remains bullish on Alphabet and Meta despite recent market volatility, citing Google Cloud's 80% growth and Meta's Muse AI agent as reasons for his optimism. He also notes the potential for Meta to monetize AI spending through a cloud arm, and sees momentum in the stock despite a recent price run-up.
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Key Takeaways
- Dan Niles still likes Alphabet and Meta despite recent market fluctuations.
- Google Cloud's 80% growth is a key factor in his optimism.
- Meta's Muse AI agent has gained traction, ranking above ChatGPT on the App Store.
- Niles sees potential for Meta to monetize AI spending through a cloud arm.
Market & Token Impact
- Alphabet's cloud backlog reached $514 billion in June, indicating strong customer demand.
- Meta's stock price has risen to $920, with JPMorgan's price target also increasing to $920.
- Google Cloud's growth has outpaced other major cloud providers, including Microsoft and Amazon.
Broader Context & What's Next
- The success of Meta's Muse AI agent and Alphabet's cloud growth suggests that investors are willing to pay for AI chips.
- However, Niles notes that investors should continue to monitor search data, as concerns about Google Search's disruption by AI remain.
- The potential for Meta to monetize AI spending through a cloud arm could be a key factor in the company's future success.
- As the AI landscape continues to evolve, investors will need to carefully consider the potential returns on AI spending and the competitive landscape.