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ETFs to Soar Post Alphabet's Strong Q2 Earnings Results
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After the closing bell on Wednesday, Google parent Alphabet (GOOGL - Free Report) reported solid second-quarter 2025 results, topping both revenue and earnings estimates. The tech giant also raised its capital expenditures forecast for the year, signaling a more aggressive investment push into AI infrastructure.
As such, shares of GOOGL jumped as much as 3% in after-market trading on an elevated volume. Investors should tap the strength with ETFs having a double-digit allocation to Alphabet. These include Roundhill Magnificent Seven ETF (MAGS - Free Report) , iShares Global Comm Services ETF (IXP - Free Report) , Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) , Vanguard Communication Services ETF (VOX - Free Report) and Communication Services Select Sector SPDR Fund (XLC - Free Report) .
Earnings in Focus
Earnings per share came in at $2.31, easily outpacing the Zacks Consensus Estimate of $2.15 and improving 22% from the year-ago quarter. This marks the tenth consecutive quarter of earnings beat. Revenues grew 14% year over year to $96.43 billion.
Alphabet’s Google Cloud business revenues grew 32% year over year to $13.62 billion, bolstered by a new partnership with OpenAI, which announced plans to use Google’s infrastructure to power its ChatGPT platform. The company’s search unit brought in $54.19 billion in revenues despite stiff AI competition. Advertising revenues were $71.34 billion, up about 10.4% year over year. YouTube division revenues grew 13.8% to $9.8 million during the second quarter.
Google CEO Sundar Pichai revealed that the company’s AI Overviews, which summarize search results, now reach over 2 billion monthly users across more than 200 countries, up from 1.5 billion last quarter. The Gemini app, home to Google’s AI chatbot, has surpassed 450 million monthly active users. Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year (read: Will Nasdaq ETFs Continue Their Rally Going Into Q2 Earnings?).
Alphabet is also investing heavily in AI talent. Earlier this month, the company acquired AI coding startup Windsurf in a $2.4 billion deal, bringing in CEO Varun Mohan and top researchers, along with licensing its technology. The company raised its capital expenditures forecast to $85 billion for this year, up $10 billion from February, due to “strong and growing demand for the Cloud products and services.”
Roundhill Magnificent Seven ETF is the first-ever ETF that offers investors equal-weight exposure to “Magnificent Seven” stocks. Alphabet accounts for a 15.3% share in the basket. MAGS has amassed $2.4 billion in its asset base and charges 29 bps in fees per year. It trades in an average daily volume of 2 million shares (read: Mag 7 ETFs Surge: Will the Rally Keep Rolling?).
iShares Global Comm Services ETF provides global exposure to companies in media, entertainment, social media, search engine, video/gaming and telecommunication services by tracking the S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index. It holds 69 stocks in its basket, with Alphabet taking the second spot at 12.8%. Interactive media & services dominates the fund’s return at 52.4%, followed by integrated telecommunication services (17.8%). iShares Global Comm Services ETF has amassed $542.9 million in its asset base while trading at an average daily volume of 39,000 shares. The expense ratio comes in at 0.41%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 105 stocks in its basket, with Alphabet occupying the second position at a combined 12.7%. Fidelity MSCI Communication Services Index ETF has amassed $1.6 billion in its asset base and trades in an average daily volume of 108,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (see: all the Communication ETFs here).
Vanguard Communication Services ETF targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 118 stocks in its basket, Alphabet takes the second spot at 12.5% of the portfolio. Interactive media & services is the top sector, accounting for 51.1% of the portfolio, while movies & entertainment, cable & satellite, and integrated telecommunication services round off the next three. Vanguard Communication Services ETF has AUM of $5.2 billion and trades in a good volume of 178,000 shares a day, on average. It charges 9 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services. It has accumulated $24 billion in its asset base. It follows the Communication Services Select Sector Index and holds 24 stocks in its basket, with Alphabet occupying the second position with a 10.4% share. About 38% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two. Communication Services Select Sector SPDR Fund charges 8 bps in annual fees and trades in an average daily volume of 5 million shares. It has a Zacks ETF Rank #2 (Buy).
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ETFs to Soar Post Alphabet's Strong Q2 Earnings Results
After the closing bell on Wednesday, Google parent Alphabet (GOOGL - Free Report) reported solid second-quarter 2025 results, topping both revenue and earnings estimates. The tech giant also raised its capital expenditures forecast for the year, signaling a more aggressive investment push into AI infrastructure.
As such, shares of GOOGL jumped as much as 3% in after-market trading on an elevated volume. Investors should tap the strength with ETFs having a double-digit allocation to Alphabet. These include Roundhill Magnificent Seven ETF (MAGS - Free Report) , iShares Global Comm Services ETF (IXP - Free Report) , Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) , Vanguard Communication Services ETF (VOX - Free Report) and Communication Services Select Sector SPDR Fund (XLC - Free Report) .
Earnings in Focus
Earnings per share came in at $2.31, easily outpacing the Zacks Consensus Estimate of $2.15 and improving 22% from the year-ago quarter. This marks the tenth consecutive quarter of earnings beat. Revenues grew 14% year over year to $96.43 billion.
Alphabet’s Google Cloud business revenues grew 32% year over year to $13.62 billion, bolstered by a new partnership with OpenAI, which announced plans to use Google’s infrastructure to power its ChatGPT platform. The company’s search unit brought in $54.19 billion in revenues despite stiff AI competition. Advertising revenues were $71.34 billion, up about 10.4% year over year. YouTube division revenues grew 13.8% to $9.8 million during the second quarter.
Google CEO Sundar Pichai revealed that the company’s AI Overviews, which summarize search results, now reach over 2 billion monthly users across more than 200 countries, up from 1.5 billion last quarter. The Gemini app, home to Google’s AI chatbot, has surpassed 450 million monthly active users. Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year (read: Will Nasdaq ETFs Continue Their Rally Going Into Q2 Earnings?).
Alphabet is also investing heavily in AI talent. Earlier this month, the company acquired AI coding startup Windsurf in a $2.4 billion deal, bringing in CEO Varun Mohan and top researchers, along with licensing its technology. The company raised its capital expenditures forecast to $85 billion for this year, up $10 billion from February, due to “strong and growing demand for the Cloud products and services.”
ETFs in Focus
Roundhill Magnificent Seven ETF (MAGS - Free Report)
Roundhill Magnificent Seven ETF is the first-ever ETF that offers investors equal-weight exposure to “Magnificent Seven” stocks. Alphabet accounts for a 15.3% share in the basket. MAGS has amassed $2.4 billion in its asset base and charges 29 bps in fees per year. It trades in an average daily volume of 2 million shares (read: Mag 7 ETFs Surge: Will the Rally Keep Rolling?).
iShares Global Comm Services ETF (IXP - Free Report)
iShares Global Comm Services ETF provides global exposure to companies in media, entertainment, social media, search engine, video/gaming and telecommunication services by tracking the S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index. It holds 69 stocks in its basket, with Alphabet taking the second spot at 12.8%. Interactive media & services dominates the fund’s return at 52.4%, followed by integrated telecommunication services (17.8%). iShares Global Comm Services ETF has amassed $542.9 million in its asset base while trading at an average daily volume of 39,000 shares. The expense ratio comes in at 0.41%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 105 stocks in its basket, with Alphabet occupying the second position at a combined 12.7%. Fidelity MSCI Communication Services Index ETF has amassed $1.6 billion in its asset base and trades in an average daily volume of 108,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (see: all the Communication ETFs here).
Vanguard Communication Services ETF (VOX - Free Report)
Vanguard Communication Services ETF targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 118 stocks in its basket, Alphabet takes the second spot at 12.5% of the portfolio. Interactive media & services is the top sector, accounting for 51.1% of the portfolio, while movies & entertainment, cable & satellite, and integrated telecommunication services round off the next three. Vanguard Communication Services ETF has AUM of $5.2 billion and trades in a good volume of 178,000 shares a day, on average. It charges 9 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services. It has accumulated $24 billion in its asset base. It follows the Communication Services Select Sector Index and holds 24 stocks in its basket, with Alphabet occupying the second position with a 10.4% share. About 38% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two. Communication Services Select Sector SPDR Fund charges 8 bps in annual fees and trades in an average daily volume of 5 million shares. It has a Zacks ETF Rank #2 (Buy).