Alphabet Shares Skyrocket As Bard AI Takes Flight
In a bold move marking an important milestone in their business trajectory, Alphabet Inc., the parent company of Google, successfully rolled out its advanced AI chatbot, Bard, in both Europe and Brazil. This move, amid concerns about international regulatory restrictions, propelled Alphabet shares up by an impressive 4.9% on Thursday. The stock reached a price of $124.73, witnessing its most substantial single-day percentage leap since early February, back when Bard was first introduced to the public. Moreover, the shares even managed to reach their apex since mid-June in this session.
Outshining the broader market performance, Alphabet shares amplified the gains of the S&P 500 which rose by a modest 0.6%, stimulated by signs of a subsiding inflation trend. The much-awaited launch of Bard in the European Union, which was initially postponed due to local privacy regulations, could finally take place after Google managed to placate watchdogs on key matters of transparency, choice, and control.
Financial analysis experts at investment firm AJ Bell, including Head of Financial Analysis, Danni Hewson, linked Thursday’s rally to Bard’s expansive launch in Europe and Brazil, as well as its venture into new languages. Art Hogan, chief market strategist at B Riley Wealth, echoed this sentiment, emphasizing that this move signifies Bard’s most substantial expansion since its inaugural launch in February and places it in direct competition with Microsoft’s AI ChatGPT, which itself saw a 1.1% growth on Thursday.
Highlighting Google’s diligent efforts to address data and privacy concerns, Hewson stated, “They’ve been able to reassure European regulators about those issues, which just paves the way for further advantage really.” This successful expansion also ignited investor enthusiasm around generative artificial intelligence, causing Alphabet shares to rise around 41% this year. Rival Microsoft has also seen a similar growth of 42% in 2023. On a related note, TD Cowen increased its price target for Alphabet shares to $140 from $130, hinting at expectations of accelerated growth in Google’s search business.
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