Dan Ives: Alphabet earnings will set the tone for mega-cap tech earnings

ACCELERATING BOTH REVENUE AND BACKLOG. LESLIE. >> YEAH, THAT FULL STACK ADVANTAGE IS GOING TO BE HUGE ONCE WE SEE THOSE NUMBERS. MAC. THANK YOU. FOR MORE, LET'S BRING IN YORKVILLE IVES PARTNER DAN IVES, AND CNBC CONTRIBUTOR REQUISITES BRYN TALKINGTON. THANK YOU BOTH SO MUCH FOR BEING HERE. DAN, YOU THINK ALPHABET IS ACTUALLY THE BEST POSITIONED OF THE HYPERSCALERS AND TODAY IS ABOUT PROVING IT. WHY DO YOU THINK IT'S THE BEST POSITION. AND WHAT DO YOU THINK IT NEEDS TO DO TO ACTUALLY PROVE IT? >> I THINK IT SETS THE TONE FOR THIS TECH EARNINGS SEASON, BECAUSE WHEN YOU THINK ABOUT WHAT'S HAPPENING ON CLOUD CALL IT MID 60% GROWTH. THIS HAS REALLY BEEN A TURNAROUND FOR THE AGES THAT YOU'VE SEEN ALPHABET GO BACK TO A YEAR AGO. I THINK IT'S SHOWING THAT YOU'RE SEEING THE GROWTH. YOU'RE SEEING THE ENTERPRISE REALLY START TO GO AFTER THE AI MONETIZATION. AND THEN OF COURSE, WHAT THEY'VE DONE ON SEARCH, WHAT THEY'VE REALLY DONE ACROSS THE BOARD WHEN IT COMES TO GEMINI, DESPITE THE FACT THAT IT WAS DELAYED, LOOK, A YEAR AGO, NEW YORK CITY CAB DRIVER WAS BEARISH ON ALPHABET. AND I THINK NOW REALLY FOR THEM, IT'S SHOWING THAT THE CAPEX MACKENZIE TALKED ABOUT IT LIKELY OVER 300 BILLION NEXT YEAR, THAT THAT'S SOMETHING THAT'S NOW SHOWING MORE AND MORE MONETIZATION. IT SETS THE TONE FOR MICROSOFT, FOR AMAZON, FOR ULTIMATELY DOWN THE ROAD FOR META AND OTHERS. IN TERMS OF WHAT'S HAPPENING, GOING FROM THIS CAPEX PIECE TO MONETIZATION. >> YEAH, THE CAB DRIVER MAY HAVE BEEN BEARISH, BUT THEN BERKSHIRE HATHAWAY WASN'T. SO MAYBE THAT CHANGED THE GAME FOR THEM. BRENT, HOW ARE YOU THINKING ABOUT THE MARKET APPETITE FOR RAISING CAPEX IN TONIGHT'S REPORT. IF THAT HAPPENS IN LIGHT OF WHAT WE'VE SEEN SO FAR WITH ROI. >> IT SEEMS LIKE MY BET IS THAT GOOGLE IS GOING TO RAISE AGAIN. I MEAN, THEY'RE GOING TO DO WHAT, 117 BILLION IN REVENUES. SO THAT'S GOING TO BE A REALLY STRONG NUMBER. AND TO KIND OF HIT ON, YOU KNOW, DAN'S DAN'S BULLISHNESS ON GOOGLE, IF YOU THINK ABOUT THEIR VERTICAL INTEGRATION, I MEAN, FROM THE AI SIDE, FROM THE CHIPS TO YOUTUBE, WHICH IS GOING TO BE THEY'RE GOING TO BE MONETIZING THAT ADVERTISING. SO WELL, I THINK GCP, THE GOOGLE CLOUD IS GOING TO CONTINUE TO ADVANCE. I THINK PROBABLY 25% IS THE ESTIMATE OF GROWTH. AND SO I THINK AS AI ACCELERATES, I THINK WE'RE GOING TO SEE THE CLOUD BUSINESS ACCELERATE AS WELL. AND SO REALLY YOU HAVE ALL OF THAT. AND SO I THINK THE MARKET SO FAR HAS BEEN VERY WILLING TO SAY YOU CAN SPEND THE STOCK'S UP ABOUT 10%, MACKENZIE SAID EARLIER. OBVIOUSLY IT'S ABOUT 13% OFF OF THAT ALMOST 400 HIGH. BUT I THINK THE NUMBERS WILL BE STRONG. THE MARKET WILL ALLOW THEM FOR CAPEX JUST BECAUSE THEY DO HAVE MONETIZATION. NOT ONLY WOULD THE CHIPS, BUT I DO THINK, YOU KNOW, YOUTUBE SEARCH, GEMINI, ETCETERA, AND THE CLOUD BUSINESS, WHICH IS GROWING VERY FAST, HELPS FROM THE MONETIZATION. THEY'RE MONETIZING THEIR CURRENT BALANCE SHEET VERY, VERY WELL. >> YEAH. CLOUD, I THINK ESTIMATES ARE WHAT, MID 60S IN TERMS OF PERCENTAGE GROWTH WHISPER NUMBER EVEN HIGHER THAN THAT. I MEAN, IS THE BAR TOO HIGH THAT THOSE ARE HUGE NUMBERS. >> THEY'RE HUGE NUMBERS. BUT I THINK WHEN IT COMES DOWN TO PROBABLY THE MOST IMPORTANT THING IN THIS WHOLE EARNINGS SEASON, IT'S THE HYPERSCALERS, WHAT THEY SHOW FROM A CLOUD GROWTH PERSPECTIVE, BECAUSE THAT IS AT THE END OF THAT IS SHOWING THE ENTERPRISE USE CASES, EVEN THOUGH THERE'S CAPACITY CONSTRAINT IN TERMS OF WHAT THEY'RE DOING AND WHAT KURIAN'S DONE THERE ON GOOGLE CLOUD, I THINK THAT CONTINUES REALLY ALMOST BE A POSTER CHILD FOR WHAT OTHERS WANT TO DO. AND THAT'S WHAT THE STREET IS SO FOCUSED ON IS BRENDAN TALKED ABOUT THIS ALL COMES DOWN TO CAPEX MONETIZATION. AND I THINK IT REALLY STARTS TONIGHT TO REALLY SET THE TONE FOR WHAT'S GOING TO BE, I CONTINUE TO BELIEVE, VERY STRONG TECH EARNINGS. >> SEASON, IN OTHER WORDS, RETURN ON INVESTMENT. AND THERE'S BEEN A LOT OF INVESTMENT. BRIN AND I KNOW YOU HAVE FLAGGED JUST THIS MASSIVE AMOUNT OF DEBT, DEBT AND EQUITY THAT'S COME INTO THE MARKET THAT HAS LARGELY SUPPORTED THE AI INFRASTRUCTURE BUILD OUT. DO YOU FEEL LIKE THAT'S REACHING THE POINT OF EXHAUSTION OVERALL, AND IS THERE ANYTHING IN TONIGHT'S REPORT THAT COULD SUGGEST, YOU KNOW, MORE UPSIDE ON THAT FRONT OR POTENTIALLY MORE RISKS? >> I MEAN, THE MARKET IS ALLOWING GOOGLE AND THE OTHER COMPANIES TO CONTINUE TO ISSUE DEBT. I THINK THE MARKET WILL CONTINUE. THE BOND MARKET SO FAR WILL CONTINUE TO ALLOW GOOGLE TO ISSUE DEBT. BUT I DO THINK THERE'S A LIMIT. AND I THINK WE'LL START SEEING THAT IN YIELDS RIGHT. THE MARKET THE BOND MARKET WILL ACCURATELY SNIFF OUT IF THE BOND MARKET IS GETTING, YOU KNOW, KIND OF TIRED OF ALL THIS ISSUANCE. BUT I DO THINK IT'S SOMETHING I'M VERY MINDFUL OF BECAUSE IT HAS BEEN MASSIVE, NOT RELATIVE TO THE DENOMINATOR OF THEIR MARKET CAP, BUT MASSIVE IN THE BOND ISSUANCE WORLD FROM THE CORPORATE THE CORPORATES PART OF TECHNOLOGY,