AI Agents and the Software Crisis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy GOOGL?
Source: Barron's
Best Trade in 2026: The most profitable investment strategy in 2026 has been to buy semiconductor stocks while selling software companies.
Performance of Semiconductor Stocks: The iShares Semiconductor ETF has increased by 19% in 2026, following a 40% gain in 2025.
Struggles of Software Companies: In contrast, software companies have faced significant losses, with the iShares Expanded Tech-Software Sector ETF down 22% this year.
Quarterly Decline: The software sector also experienced an 8% decline in the fourth quarter of the previous year.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 303.330
Low
305.00
Averages
374.25
High
400.00
Current: 303.330
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Digital Advertising Growth: Walmart's digital business grew by 27% in the U.S. in the fourth quarter and has posted double-digit percentage gains for 15 consecutive quarters, indicating strong performance in e-commerce and a focus on higher-margin businesses, despite losing its market leadership.
- AI Strategic Initiatives: Walmart's partnerships with OpenAI and Google to launch the AI shopping assistant Sparky enhance customer experience, with users reporting a 35% higher average order value, highlighting the potential and importance of AI in retail.
- Amazon's AI Investments: Amazon plans to spend up to $200 billion on AI infrastructure in 2023, and despite market skepticism regarding its capital expenditures, its AI assistant Rufus has generated nearly $12 billion in incremental annualized sales, demonstrating its strong commitment to AI development.
See More
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- Proposal Withdrawal Impact: New York Governor Hochul's abandonment of the commercial robotaxi pilot proposal represents a significant setback for Waymo, which had been testing its autonomous vehicles in the state and aimed to expand its service there.
- Stakeholder Opposition: The proposal faced strong pushback from labor unions, transit workers, and rideshare drivers, with Hochul stating that conversations with stakeholders indicated a lack of support, reflecting public concerns over the safety of autonomous vehicles.
- Testing Permit Unaffected: Despite the withdrawal of the proposal, Waymo's testing in New York City will continue, as the company has received a permit from the New York Department of Transportation to conduct limited autonomous vehicle testing in Manhattan and Brooklyn.
- Market Expansion Plans: Waymo plans to launch its commercial driverless ride-hailing service in several new cities, including Dallas, Denver, and Washington D.C., and despite regulatory challenges, it remains committed to collaborating with the state legislature to advance this issue.
See More
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- Revenue Ranking Shift: Amazon has surpassed Walmart for the first time with an annual revenue of $716.9 billion compared to Walmart's $713.2 billion, highlighting intensified competition in the retail sector amid rapidly changing consumer preferences.
- Digital Transformation Success: Walmart's digital business grew by 27% in the U.S. during the fourth quarter, achieving double-digit growth for 15 consecutive quarters, demonstrating its ability to leverage over 4,600 stores and 600 Sam's Club locations while chasing Amazon.
- AI Strategy Implementation: Walmart's partnerships with OpenAI and Google to launch the AI shopping assistant Sparky have resulted in a 35% increase in average order value for users, indicating that its investments in AI are enhancing customer experience and operational efficiency.
- Amazon's AI Investment Plans: Amazon plans to spend up to $200 billion on AI initiatives in 2023, primarily for data centers and networking equipment, although skepticism from the market has led to a decline of over $450 billion in its market value in the short term.
See More
