Alphabet (GOOGL): Outperform Rating Holds as AI Efforts Gain Traction

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks in the Spotlight TodayOn July 28, JMP Securities reiterated its Market Outperform rating on the stock with a $225.00 price target. The rating affirmation follows Google’s launch of Web Guide, an experiment by Search Labs that leverages AI to intelligently organize the search results page.

According to the firm, Web Guide is likely the next iteration of Google search, following previous experiments like AI Overviews and AI Mode. The firm anticipates it to be an evolution of Google’s efforts to improve the links section in search results.

Alphabet (GOOGL): Outperform Rating Holds as AI Efforts Gain Traction

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The firm further noted how Google has been cautious with its adoption of the AI Mode, reflecting on how the company has been balancing search monetization with engagement. This may be because AI Mode likely monetizes at a lower rate in comparison to traditional search.

Moreover, while Google is likely to have strong near-term results driven by its superior commercial search capabilities compared to ChatGPT, there may be some challenges, such as the antitrust trial penalties and improving e-commerce experiences from competitors.

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 risk and potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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