Alphabet and Meta: AI-Driven Advertising Growth and Market Leadership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Google AI Technology Edge: Alphabet's Gemini large language model, integrated into Google Search, drives revenue growth, with projections of deploying 7 million TPUs by 2028, generating $13 billion annually, showcasing its leadership in AI.
- Rapid Cloud Growth: Google Cloud's revenue surged 34% last quarter with operating income skyrocketing 85%, and the acquisition of cloud security firm Wiz further expands its data center revenue, enhancing market competitiveness.
- Meta Advertising Platform Optimization: Meta leverages AI algorithms to enhance user experience, resulting in a 26% revenue growth last quarter, with ad impressions up 14% and ad prices rising 10%, demonstrating its strong profitability in the digital advertising market.
- WhatsApp and Threads Potential: Meta's WhatsApp and newly launched Threads platform boast over 3 billion users, and despite spending pressures, significant revenue growth is anticipated through ad placements and AI optimization.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 312.00 USD with a low forecast of 236.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
31 Buy
7 Hold
0 Sell
Strong Buy
Current: 335.840
Low
236.00
Averages
312.00
High
350.00
Current: 335.840
Low
236.00
Averages
312.00
High
350.00
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.
