10 AI Stocks in the Spotlight for Investors

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1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 219

Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks in the Spotlight for Investors. On September 11, Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating on the stock with a $250.00 price target.

Based on conversations with third-party checkout providers FastSpring and Paddle, the analysts have come to the conclusion that web checkout systems are enhancing profitability across the mobile ecosystem.

They further noted that even though the conversion rates dip slightly, it is still better than Apple’s higher fee structure. The trend benefits game developers and their advertising partners, as well as digital app companies such as Duolingo.

“Web checkout is set to improve profitability across the mobile ecosystem. We spoke with two third-party providers of website checkout (FastSpring and Paddle) and they both are seeing clients on average benefit by moving to website checkout as the ~10% reduction in conversion is more than made up for by reducing Apple’s 30% take rate to 5% (their elevated fee over Stripe pricing). We believe this is positive for game developers (and their downstream advertising partners including Meta (META, MO, PT $900), Google (GOOGL, MO, PT $250), and Unity (U, MO, PT $35) and for digital app businesses including Duolingo, Life360, Grindr, and Peloton (PTON, MP).”

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Gaining Attention on Wall Street  and 10 AI Stocks on Wall Street’s Radar

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