Stock Market Update: Dow, S&P 500, and Nasdaq React to Google and Tesla Earnings—What You Need to Know Today

Analysts on Wall Street are feeling positive about Alphabet’s stock after the company reported its earnings. They noted that despite worries about AI taking over search engines, Alphabet’s search revenue is still on the rise.

Bank of America analyst Justin Post mentioned that results from search are steady. This gives confidence in how Alphabet is managing its AI transition. In fact, he increased his price outlook on Google shares from $210 to $217.

Post also pointed out that Google’s AI features have boosted search queries by 10%. Interesting enough, over two billion people use these AI tools monthly. The Gemini app, which is part of this initiative, has also reached 450 million active users each month.

RBC Capital analyst Brad Erickson has a similarly optimistic view. He raised his target on Google shares from $200 to $220, stating, “Even with competition in AI, Google is effectively harnessing enough traffic to keep growing.”

However, Alphabet hasn’t provided specific revenue figures for its AI efforts but instead emphasizes how AI is enhancing its core businesses.

Another point of interest is that analysts aren’t alarmed by Alphabet increasing its capital expenditure for the year from $75 billion to $85 billion. This increase is mainly for building up infrastructure like data centers to support AI technologies. Erickson noted that the company is making strategic investments in AI with clear expectations for returns.

The landscape for AI in search is evolving rapidly. According to a recent report by Statista, the global AI market is projected to grow to $126 billion by 2025, which shows the extensive potential and competition in the field.

As more users turn to AI features, companies entrenched in tech are racing to adapt. Social media channels are buzzing with discussions about the future of AI. Many users express excitement about how these technologies can improve their online experiences.

In summary, Alphabet is navigating its AI journey with cautious optimism, showing growth in search revenue while investing heavily for the future. This trend signifies a broader shift in the tech industry, where companies are focusing on innovation to stay competitive.



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