Alphabet Inc. recently unveiled a series of significant artificial intelligence (AI) innovations at its annual developer conference held in Mountain View, California.
Alphabet's stock price (NASDAQ: GOOGL) is trading up 0.43% in this morning's pre-market, looking to find some strength after a difficult start to the year. The share price has fallen 13.44% YTD, as the broader NASDAQ 100 has added 1,87%. Underperformance from GOOGL is a not something markets have become accustomed to, but such has been the perceived threat to the business in the short-term, that the stock has been searching for support.
A highlight of the developer conference was the introduction of “Google AI Ultra,” a premium subscription service priced at $249.99 per month. This service offers subscribers exclusive access to cutting-edge AI technologies, the highest usage limits, and additional perks such as a YouTube Premium subscription. The “Google AI Ultra” subscription is being marketed as a VIP gateway to the latest AI advancements from Google. Josh Woodward, the head of product incubator Google Labs, emphasized the exclusive nature of the offerings within this subscription.
The significance of AI in the stock market was underscored by Josh Brown, CEO of Ritholtz Wealth Management, who identified AI as the most critical theme currently, even surpassing tariffs. Supporting this perspective, research conducted by JPMorgan indicated that the term “AI” appeared 2.6 times more frequently than “tariff” in recent S&P 500 earnings reports.
Whilst there have been some downwards revisions from the street as far as Alphabet's stock is concerned, price targets continue to offer upwards perspectives. The low target on the street of $180 reflects perceived upside in GOOGL, whilst the consensus of $199.31 suggests ~20% in potential gains if analysts are correct.
The $150 level may act as a level of strong support in the short-term, having previously acted as resistance dating back to 2021. The bulls will likely be looking to take out $170 as the first step back towards any upside move, but shifting sentiment may take more than what has been seen so far.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- Admiral Markets More than 4500 stocks & over 200 ETFs available to invest in – Read our Review
- Hargreaves Lansdown The company's website is easily understandable and accessible to a wide range of customers – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
