Alphabet’s stock has initiated a comeback in the new year, rising more than 30 percent since January after dropping over 35 percent last year. The question is: What is behind Alphabet’s newfound strength?
The answer can be found in the combination of good numbers and positive news related to artificial intelligence (AI). After disappointing results in Q4 2022, things looked up for Alphabet in Q1. Revenue rose six percent to just under $70 billion USD, and earnings of $1.17 per share exceeded analyst estimates of $1.07 per share. Of particular note was the fact that its formerly unprofitable cloud business turned a profit.
But perhaps even more important than these financial figures is Alphabet’s catch-up to Microsoft on AI technology – specifically with “Bard,” its own chatbot aimed at improving language capabilities across multiple languages and integrating AI into Google Search.
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For investors who were worried about losing out on the AI race against Microsoft, it looks like their concerns have been allayed for the time being as both companies are poised to be big winners when it comes to customer-facing applications based on AI.
Summary:
– Alphabet’s stock has risen over 30% since January after falling over 35% last year.
– Positive news regarding artificial intelligence (AI) and strong financials contributed to this.
– First quarter revenue increased by six percent while earnings per share surpassed expectations.
– The company’s once-deficitary cloud business finally turned a profit.
– Catching up with Microsoft on AI technology through Bard chatbot and multi-language capabilities reassured investors of potential gains from customer-facing applications based on AI.
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Wie wird sich Alphabet jetzt weiter entwickeln? Ist ihr Geld in dieser Aktie sicher? Die Antworten auf diese Fragen und warum Sie jetzt handeln müssen, erfahren Sie in der aktuellen Analyse zur Alphabet Aktie
