When Alphabet Inc. GOOG GOOGL reported earnings in the spring, Wall Street was fretting that the company might be disadvantaged in the artificial-intelligence race, as Microsoft Corp. MSFT plugged away on its partnership with ChatGPT creator OpenAI.When Alphabet Inc. GOOG GOOGL reported earnings in the spring, Wall Street was fretting that the company might be disadvantaged in the artificial-intelligence race, as Microsoft Corp. MSFT plugged away on its partnership with ChatGPT creator OpenAI.
Alphabet shares were up 7.0% in Wednesday morning trading and on track for their highest close since April 8, 2022, when they finished at $133.29, according to Dow Jones Market Data.Jefferies analyst Brent Thill titled his note to clients, “Don’t Call It an AI Comeback,” calling out that the company has been “AI-first” for seven years.
“We believe generative AI is starting to have a positive impact and was a factor in the beat,” Thill wrote of Alphabet’s upbeat cloud performance in the latest quarter.
Given years of AI infusion into Google products, “the near-term debate is on the upper bounds of near-term margin growth,” Nathanson continued. “We, and the market, have been rightly focused on the margin expansion narrative at Meta…but perhaps it is time to contemplate that Alphabet might be at the start of a similar run.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »