Google (GOOGL.US) earnings report night may avoid “liquidation time”: financing and capital expenditure guidelines come first, and the founder moved out of California and destroyed hidden concerns about selling stocks

The Zhitong Finance App learned that Wall Street analysts said that when the latest quarterly earnings report arrived, Google (GOOGL.US) investors had several favorable conditions, while Meta (META.US) investors had no such luck before — Meta threw out many unanticipated losses when it last disclosed financial reports, which surprised the market.

D.A. Davidson analyst Jill Luria wrote in a research report on Monday: “Google has already completed part of the financing and said when releasing the second-quarter earnings report that capital expenditure will 'drastically' increase next year, so that specific liquidation time may have passed. Notably, Mr. Brin and Mr. Page moved out of California before the January 1, 2026 deadline, so they may have avoided having to sell their holdings. This means investors will be able to focus on Anthropic-driven Google Cloud business growth.”

Last week, Meta surprised investors in several ways.

Driven by aggressive AI spending, the company experienced negative free cash flow for the first time since 2012. The company has also signaled that it will increase spending in the coming quarters.

In order to raise funds, Meta also proposed a plan that was unexpected by the market: the establishment of a new Class C common stock without voting rights is essentially equivalent to a stock split of 1 split 2.

According to the plan — which is partly designed to allow founder and CEO Mark Zuckerberg to continue operating in California as the 5% billionaire tax approaches — existing shareholders will receive 1 new non-voting Class C share for every 1 Class A or Class B share they hold. Trading is expected to begin in January 2027.

Issuing non-voting shares enabled Zuckerberg to raise external capital for Meta's AI construction without diluting his personal voting control over the tech giant.

Meta shares have come under pressure as markets worry Zuckerberg might have to sell shares to pay his Prop 40 tax bill.

But as Luria pointed out, Google investors need not worry about this.

Earlier this year, it was reported that co-founder Larry Page purchased two properties in Miami at a total cost of $173.4 million. According to another report, his co-founder Sergei Brin moved to the Nevada side of Lake Tahoe and bought a home in Miami this year.

Referring to Google's upcoming earnings report, Luria wrote, “We expect the company to discuss its plans to regain its leading position in AI. Currently, Google is ranked second or third in every market—second only to ChatGPT in the chat field, third behind Anthropic and OpenAI in the enterprise field, and even behind Meta's Muse in the personal AI assistant market.”