Alphabet

Alphabet’s (GOOG) Google is planning to add fees for use of new features powered by generative artificial intelligence, the Financial Times reported Thursday, citing people familiar with the matter. Google is studying options such as adding AI-powered search features to its existing premium subscription services, the report said. The company’s engineers are currently working on the technology needed for the service, but executives have yet to greenlight its launch, the FT reported.

By Angela Palumbo Alphabet’s Google Search faces competitive risks from other generative artificial intelligence players, but one Wedbush analyst says investor concern is exaggerated. Scott Devitt moved Alphabet to the Wedbush Best Ideas List and increased the stock’s price target to $175 from $160. Google has been the number one search engine for decades. The concern among investors is that its dominance might be affected by the introduction of generative AI search engines such as ChatGPT — which offer an alternative, in-depth option. However, Devitt wrote in a research note Friday that he believes “the perceived structural risks to Google Search are overstated” and he continues “to view Alphabet as a net beneficiary of generative AI.” To compete with other AI companies — such as Microsoft’s Bing, which uses OpenAI’s GPT software — Alphabet introduced its Gemini suite of generative AI tools to the standard Google search engine. “Alphabet’s competitive

Alphabet (GOOG, GOOGL) remains a “clear” beneficiary of generative artificial intelligence amid the persistence of longer-term debates related to the technology, Wedbush Securities said in a note Friday. “We think Google benefits from structural search and generative-AI advantages that insulate the company from competitors,” Wedbush said. The firm noted that Alphabet shares have trailed mega cap peers Amazon.com (AMZN) and Microsoft (MSFT) and the broader Nasdaq index year-to-date following Q4 results and the recent controversy related to historically inaccurate images generated by its AI model Gemini. “We think the setup has become more attractive in recent weeks with a reversal in sentiment emerging,” Wedbush said. “Specifically, we are encouraged by comments made during the company’s public appearance at an investor conference… regarding generative AI and Google Search, in addition to media reports earlier this week indicating that Google and Apple (AAPL) are in negotiations to integrate Gemini in upcoming iPhone

Alphabet’s (GOOG) Google said Tuesday it’s launching generative artificial intelligence tools targeting health care. “We’re bringing new capabilities to our models with the hope of making generative AI more helpful to health care organizations and people’s health,” Yossi Matias, Google vice president, engineering and research, said in a blog post. The company said it initially launched its AI model MedLM for chest X-ray classification projects. “We’re starting with chest x-rays because they are critical in detecting lung and heart conditions,” Matias said. MedLM for Chest X-ray is available to certain testers in an experimental preview on Google Cloud. The company is “researching how a version of the Gemini model, fine-tuned for the medical domain, can unlock new capabilities for advanced reasoning, understanding a high volume of context, and processing multiple modalities,” according to the blog post. Fitbit and Google Research units teamed up to build a personalized health AI model

Wells Fargo analyst Ken Gawrelski maintains Alphabet (NASDAQ:GOOGL) with a Equal-Weight and raises the price target from $141 to $144.

Alphabet is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Apple is in talks with Google parent Alphabet over licensing its “Gemini” artificial intelligence training model for use in iPhones. Google stock rose on the news, which follows controversy over its Gemini-powered generative AI chatbot. Apple would use the Gemini generative AI models to power new features coming to iPhone software, according to reports. Dow Jones & Co. owns Factiva.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: According to an unconfirmed Bloomberg report, Apple (AAPL 173 ****) and GOOGL are in talks that would allow AAPL to license GOOGL’s Gemini large-language model to power new features coming to iOS 18, with a focus for on-device capabilities. While we don’t expect to hear confirmation about any deal until AAPL’s WWDC in June (AAPL is also believed to be having conversations with OpenAI), we do think that GOOGL is best positioned to win any external deal for AI on AAPL’s devices given the strong search partnership the two already have. GOOGL has already demonstrated new AI capabilities with its Samsung relationship, with popular features on those phones including language translation, support of multimodal inputs for search, ability to modify/alter photos, turn videos to slow motion, and

Alphabet’s (GOOG, GOOGL) Waymo One said Wednesday it will start inviting members of its waitlist to access its fully autonomous ride-hailing service in Los Angeles on Thursday. The service will start in the Santa Monica to Downtown Los Angeles area, with the initial rides set to be free, the company said in a blog post, adding that it will transition to paid service in the coming weeks. The company said it ran rider-only testing in Austin, Texas, last week, and plans to offer the service in the city later this year. Shares of Alphabet rose about 1.7% in recent trading.

By Eric J. Savitz Google is one of the best businesses ever built. The Alphabet unit controls more than 90% of the global internet search market, which allows the company to sell an astonishing amount of advertising, $238 billion worth in 2023 alone. But the market now fears it could all come unglued by a torrent of new competition from artificial intelligence. To be sure, it hasn’t happened yet. By one estimate, Google still accounts for 39% of the global ad market. Alphabet is the fifth-largest U.S.-listed company by market value, at $1.7 trillion, trailing only Microsoft, Apple, Nvidia, and Amazon.com. Long-term investors, meanwhile, have been more than rewarded. Had you invested $1,000 in Google shares at the August 2004 initial public offering, you’d have more than $55,000 today. But the Alphabet story is finally showing cracks. At a recent $138, shares are flat this year, trailing the 8% gain

By Emily Bary A Bernstein analyst with a neutral rating on Google doubts the company’s latest AI blunder will erode trust in its search brand Only about 20% of Wall Street analysts who cover Alphabet Inc. carry anything but a bullish stance on it. That’s why Bernstein analyst Mark Shmulik says his market-perform rating on the stock makes him uniquely qualified to defend the Google parent company in the wake of its latest artificial-intelligence blunder. Google came under fire last week after it released an image-generation tool that created some racially insensitive images. On Friday the company paused the tool, which it had added to its Gemini chatbot, and Wall Street spent Monday fretting about what the debacle meant for Google’s AI positioning, brand reputation and future in the world of search. Alphabet’s stock (GOOG) (GOOGL) dropped more than 4% in the session. See also: Alphabet’s stock has weathered past

Goldman Sachs is raising its forecast for how much S&P 500 companies will pay out in dividends this year There is good news for income-oriented investors – or anybody who owns any of the so-called Magnificent Seven tech stocks that have powered much of the S&P 500’s gains over the past year. Meta Platforms Inc. (META) likely won’t be the only megacap company to introduce a first-ever dividend in 2024, according to a team of analysts at Goldman Sachs Group (GS). Fellow Magnificent Seven members Alphabet Inc. (GOOGL) and Amazon.com Inc. (AMZN) are well positioned to introduce dividends of their own this year, according to an analysis from a team of Goldman Sachs equity analysts led by David Kostin. Investors’ interest in dividend-paying stocks has increased since Meta announced its first-ever quarterly dividend earlier this month, according to the Goldman team. The increased interest has prompted the team to raise

Alphabet’s (GOOG, GOOGL) Q4 results late Tuesday showed the company’s efficiency workstreams shining through, even amid higher capital expenditures, but the focus is now on the company’s artificial intelligence projects, Morgan Stanley said in a note to clients on Wednesday. “Capex is heading higher, but we see a leading GenAI pipeline and incremental cloud and subscription rev opportunities [to further support ads],” the investment firm said, adding that Alphabet is “one of the best-positioned consumer-facing GenAI companies.” The company’s AI pipeline targeting consumers and advertisers is “flush” and ready to flow, the note said, as Alphabet is launching “multiple emerging GenAI tools for users and advertisers that we see driving more durable multi-year growth.” Morgan Stanley also noted that the benefits of Alphabet “durably re-engineering its cost base continue to show.” Alphabet’s “number of efficiency workstreams/projects continues to grow as product/process prioritization, simplified org structures/removing layers, slower headcount growth, infrastructure