Google-parent Alphabet will perform better than big-cap technology peers, according to Wedbush analysts who upgraded their price target for Google stock on Friday.
In a research note, Wedbush analysts Scott Devitt and Daniel Ives said Google stock in 2024 had climbed only 5.6% as of Thursday's market close. Shares of Microsoft were up 14.2% while Amazon.com had gained 17.2%.
"We are beginning to see signs of a reversal in sentiment emerging," said the Wedbush analysts. The brokerage raised its price target on Google stock to 175 from 160.
Google Stock: Apple Licensing Deal Coming?
Apple reportedly is in talks with Google over licensing its "Gemini" artificial intelligence training model for use in iPhones. The news follows controversy over historically inaccurate images generated by Google's Gemini-powered gen AI chatbot.
On the stock market today, Google stock climbed 2.2% to close at 150.77.
"We believe the perceived structural risks to Google Search are overstated and continue to view Alphabet as a net beneficiary of generative AI. Alphabet's competitive advantages are multifaceted; the company has an unmatched breadth of data to develop and train AI models," said the Wedbush analysts.
Further, Google stock has clawed back above its 50-day moving average. Google stock trades 4% below an entry point of 153.78.
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