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- 📈 $GOOGL: Jumps 50%+ with Gemini to Match
📈 $GOOGL: Jumps 50%+ with Gemini to Match
Google's AI breakthroughs fuel Alphabet's stock surge as the tech giant's profitable "closed loop" ecosystem and streamlined innovations impress Wall Street. 🚀
Top of the top lads!
Featured Stock of the Week
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GOOGL: GOOGL $169.10
Our featured stock this week is Alphabet Inc (GOOG, GOOGL), the tech giant behind Google, YouTube, Android, and more.
Alphabet stock is on the rise as Google's AI innovations dazzle Wall Street. The stock is fast approaching a record market cap — a milestone already surpassed by only Apple, Microsoft, and Nvidia. Can Alphabet's AI momentum propel it into this elite club?
Let's dive into the key highlights fueling Alphabet's AI-powered rally.
Evolving with Gemini
Google recently launched Gemini, its most advanced AI model yet. Gemini is being integrated across all of Alphabet's products - from search to cloud to Android. At its recent Cloud Next conference, Google demonstrated how Gemini can power AI-driven ads, cybersecurity, content creation, and more. The company also unveiled a new AI chip to turbocharge cloud workloads. Gemini is already showing results - Google says it cut search processing times by 40% and is now "enterprise ready." Industry analysts expect significant revenue growth for Google Cloud from Gemini integration. Additional Reading |  |
Growing Profitability
In Q4 2023, Google's parent company Alphabet reported impressive financial results, with total revenue growing by a remarkable 25.6% to $9.2 billion, surpassing analysts' expectations of $8.9 billion. Google's overall earnings reached $75 billion, representing a 12.4% growth compared to the previous year, while net income soared to $20.7 billion, marking an astonishing 51.8% increase. Alphabet's success can be attributed to its core advertising business, which seamlessly funnels users from search to purchase, creating a "closed loop" that drives revenue. The company's substantial cash reserves enable it to make significant investments in AI, further propelling its profit momentum. Additional Reading |  |
Gaining Efficiency
Alphabet is getting serious about its AI ambitions by cutting back on risky, expensive projects. The company's famous "moonshot" bets - bold ideas like self-driving cars and delivery drones - have long drained resources. These gambles sit in a division called Other Bets, which has racked up hefty losses over the years. Now, Alphabet is whipping Other Bets into shape. The company is tightening the purse strings, demanding better results, and even spinning off some projects to outside investors. By optimizing its innovation pipeline, Alphabet aims to pour more resources into core AI initiatives that complement its profitable ad business. This renewed efficiency is boosting investor confidence. Additional Reading |  |
Major Market News
Source: DALL-E
Wednesday, May 1 – A Message from Jerome Powell
What: Fed Chair Jerome Powell to discuss interest rate decision
Impact: Chair Jerome H. Powell, Federal Reserve Chairman, will speak to a live audience on May 1st at 2:30 p.m. ET. Powell will discuss the Market Committee’s decisions on interest rates and provide clues for the future.
Source: Federal Reserve Board
Wednesday, May 1 – The Automatic Data Processing Employment Report
What: Analyzes the private-sector labor market in the U.S.
Impact: The ADP Employment Report added a stunning 184,000 jobs in March, the biggest jump in hiring since July 2023. Thus, as job openings surge and pay scales rise above inflation, the U.S. economy may continue its upward trend.
Source: ADPEmploymentReport
Thursday, May 2 – Initial Jobless Claims
What: Analyzes the number of individuals filing for unemployment since last Thursday
Impact: The U.S. Labor Department found initial claims fell by 5000 to 207,000 in the last week of April as claims bounced between 194,000 to 225,000 in 2024. An increase in individuals filing for unemployment may be a negative economic signal.
Source: Reuters
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