Artificial intelligence (AI) development is a growing part of many company operations these days, and for tech stock Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google arm, that’s no different. With Gemini 1.5 Pro on the way to launch, there are signs that it will do some good for share prices as well. At least, that’s the word out of Deutsche Bank, who offered up a research paper on the topic. The news helped little with investors, however, who sent shares down fractionally in the closing minutes of Tuesday’s trading.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The research paper, credited to no single source, revealed that large companies should find it comforting to know where their data is being kept, and with Gemini being “grounded” to Google Search, that should not only make clear where the data is but also help ensure more accurate responses overall.
That’s particularly helpful since not so long ago, Gemini was giving downright preposterous responses to some queries, including various persons of color in positions in which they likely never should have been seen, like as 1940s-era German soldiers.
Ramping Up Elsewhere
A new search engine will likely help things out, as Deutsche Bank asserts, but so too will other developments. Google is preparing to open a new office in El Salvador, which it notes is part of a larger effort to drive digital transformation in the country. The offices therein will focus on fields like healthcare and education, among others, and help bring a range of new tools to the area.
However, reports noted that Google Cloud may have some unexpected vulnerabilities that can “…expose sensitive credentials in build logs…” Google considers this “expected behavior” and advises users to “…use a dedicated secrets store services like Google Cloud Secret Manager” in response.
What Is the Price Target for Alphabet Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 45.85% rally in its share price over the past year, the average GOOGL price target of $165.98 per share implies 7.49% upside potential.
Is It Wise to Allocate $1,000 Toward GOOGL Stock Right Now?
Before you hurry to invest in GOOGL, think about the following:
TipRanks’ team has built the Top Stocks Portfolio for investors, and Alphabet is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant gains in the years ahead.
