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Editor’s Note: Our friend Louis Navellier is a regular guest at Mar-a-Lago, President Trump’s private residence in Palm Beach Florida. He’s also one of America’s top tech investors, managing a $1.1 billion portfolio – including $358 million in AI stocks. (He recommended Nvidia to his followers before it soared 44,000%.) In addition, he predicted the Dot-Com crash. He called Google’s rise. And now he has a shocking warning about the SpaceX IPO that all Americans deserve to hear. See below for details.

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SpaceX went from a $1.75 trillion IPO – the biggest in history…

To a $2.5 trillion valuation just days later.

Elon became the world’s first paper trillionaire.

But Elon’s dreams of dominating space and AI could soon come crashing down.

And the SpaceX hype train continues, despite some choppy performance in the stock.

But I’m writing to you with an urgent warning.

Do not invest a DIME in SpaceX until you’ve heard what’s coming.

Because Donald Trump has signed Executive Order (#14363).

Not only could it render SpaceX’s AI technology obsolete…

It could trigger a $100 trillion “reset” of the AI markets in America.

And it could “roll back” all the stock’s early gains in the process.

How could Trump’s executive order end Elon’s dreams of AI dominance?

How could it send shares of one obscure AI stock soaring?

And how could you turn this into a massive opportunity, starting now?

Simply click here for my brand-new presentation revealing all the details.

I even reveal the name and ticker of one company poised to profit, for free.

Fair warning: This information is very time sensitive.

I could take it down at any time.

So please don’t delay.

Inform yourself now, before you invest a dime in SpaceX.

Louis Navellier
Senior Investment Analyst, InvestorPlace

P.S. I consider this the biggest prediction in my 40-year career. Trump’s executive order could send shockwaves throughout the AI economy. As you’ll see, he’s building a new AI technology 283 trillion times more powerful than Elon’s. It may sound crazy. But it’s 100% true. And understanding exactly what’s coming could save you a lot of money in 2026… while getting you in early on the biggest AI revolution ever.

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Alphabet Joins the Dow at the Wrong Moment

The irony isn’t subtle. Alphabet (GOOGL) officially joined the Dow Jones Industrial Average on June 29, replacing Verizon after 22 years in the index. The stock popped roughly 4% on its debut. And yet, as of the end of June, Alphabet is still on track for its worst monthly performance since February 2025, down roughly 11% for the month with six of the past seven weeks closing in the red.

That’s the whole tension right now.

The Dow inclusion is real and it matters symbolically. S&P Dow Jones Indices cited Alphabet’s business breadth across advertising, cloud infrastructure, AI, hardware, autonomous mobility, healthcare technology, and media distribution as the case for inclusion. With GOOGL trading around $350 versus Verizon’s roughly $45, the math was obvious too. Alphabet carries materially more weight in the price-weighted Dow than Verizon ever did.

But the Dow bump doesn’t fix what’s actually weighing on the stock.

The Real Debate

Investor concerns about Alphabet are centered on AI execution: compute constraints, the payoff timeline from massive capex, and whether the free cash flow hit investors are absorbing today is temporary or structural.

That spend is not small. After Q1 earnings, management raised full-year 2026 capital expenditure guidance to $180 to $190 billion — up from the prior range of $175 to $185 billion, and nearly double the $91.4 billion Alphabet spent across all of 2025. CFO Anat Ashkenazi went further, telling analysts that 2027 capex is expected to “significantly increase” from 2026’s already elevated level.

Revenue is still growing. Q1 2026 revenue came in at $109.9 billion, up 22% year over year, beating consensus estimates of around $106.7 billion. Google Cloud accelerated to 63% growth, crossing $20 billion in quarterly revenue for the first time, with a contracted backlog of roughly $462 billion that nearly doubled sequentially. The business isn’t broken. But the market is asking a harder question: when does the capex actually convert?

Slight tangent, but it matters — the talent story is feeding that anxiety in a way pure financials don’t fully capture. John Jumper, a Google DeepMind vice president known for AlphaFold, announced he is joining Anthropic. Earlier, Noam Shazeer — one of the original Transformer paper authors — reportedly moved to OpenAI. One exit doesn’t break Gemini. But it feeds a perception that frontier AI talent has more mobility than it used to, and that Alphabet’s grip on top researchers may be loosening.

What the Numbers Show

• Q1 2026 Revenue: $109.9 billion, up 22% year over year; beat consensus of ~$106.7B
• Google Cloud Q1 revenue: $20.0 billion, up 63% year over year
• Cloud operating margin: 32.9% in Q1 2026, up from 17.8% a year earlier
• Cloud backlog: ~$462 billion (nearly doubled sequentially)
• 2026 capex guidance: $180 to $190 billion (up from prior range; nearly double 2025’s $91.4B)
• Q1 capex spend: $35.7 billion in a single quarter
• Equity raised in June 2026: $84.75 billion to fund AI infrastructure, including a $10B anchor investment from Berkshire Hathaway
• Operating margin: 36.1% in Q1 2026, up 2 percentage points year over year

Bull / Base / Bear

Bull: The Cloud backlog at roughly $462 billion is real contracted demand. Cloud operating margins already expanded from 17.8% to 32.9% in a single year — that’s not a slow-moving story. If the capex cycle peaks in 2026 and free cash flow recovers into 2027, the stock moves sharply higher. Gemini adoption across Search, Workspace, and Android is a monetization angle that hasn’t fully played out yet. Jefferies has a Buy rating with a $445 price target.

Base: Alphabet grinds sideways for two or three quarters as the market waits for evidence that AI spending converts to sustained margin expansion. The Dow inclusion provides some institutional tailwind, but not enough to overcome free cash flow anxiety in the near term. Q2 earnings become the key reset point.

Bear: If lower-cost AI models continue improving and DeepMind talent losses accelerate, the market starts questioning whether Alphabet’s infrastructure bet is defensive spending rather than offensive growth. Layer in EU regulatory exposure — Alphabet faces a July 27 deadline on Digital Markets Act data-sharing requirements, with non-compliance risking penalties of up to 10% of global revenue — and the valuation compression gets real.

Technical Overlay

GOOGL peaked at $408.61 in May before the June drawdown. The stock closed at $337.39 on June 26 — down roughly 11.6% over 30 days — before the Dow inclusion bounce lifted it back toward $350. The 50-day simple moving average sits near $368, and the 200-day simple moving average is near $312. The stock is sandwiched between those two levels. Watch whether the index-inclusion bounce holds above $345 or fades back into the prior range as quarter-end positioning clears.

What to Watch

• Q2 earnings (expected July 28) — the next hard data point on whether Cloud growth held above 60% and whether free cash flow stabilizes
• Any further DeepMind or Gemini team departures reported in the press
• EU Digital Markets Act deadline on July 27 — non-compliance could trigger penalties up to 10% of global revenue
• Competitor pricing moves, specifically from Chinese AI providers on enterprise cloud
• Progress on monetizing the ~$462 billion cloud backlog — capacity additions are the gating factor, with Pichai himself acknowledging compute constraints capped Q1 Cloud revenue below what demand would have supported

Bottom Line

The Dow badge is meaningful. The business underneath it is still large, still growing, and still strategically relevant across search, cloud, and AI. But the market’s real question right now isn’t whether Alphabet belongs in the Dow. It’s whether $180 to $190 billion in annual capex — with 2027 expected to climb even higher — produces a return that justifies the free cash flow hit investors are absorbing today. That answer doesn’t come from an index change. It comes from Q2 earnings, and then Q3, and then wherever the AI talent roster and Cloud margin story stand six months from now.

For informational purposes only.