Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) are two technology giants that have aimed to forge a partnership in 2024. Today, I want to discuss the nature of that partnership, and whether investors should be excited about its prospects. Apple stock has dropped 3% month-over-month as of close on Tuesday, March 19, 2024. Its shares are now down 5. Meanwhile, Alphabet Class A shares have jumped 4.1% over the past month. The stock has now increased 6.4% in the year-to-date period.
This week, Bloomberg News reported that Apple and Alphabet were in talks for Google to have its Gemini artificial intelligence (AI) technology built into the next version of the iPhone – and potentially into future models after that. Both stocks reacted positively to the news to close out the previous week.
A partnership between Apple and Alphabet would allow Gemini to power some features for the new iOS 18 update which is set for release later this year. If the information is accurate, analysts predict that Alphabet will be in a terrific position to gain traction in the AI space.
Apple is still on track for strong earnings growth going forward. In fiscal 2023, the company delivered annual revenue of $394 billion. That was up 8% compared to the previous year. Meanwhile, Alphabet is also on track for impressive earnings growth. It delivered net income of $73.7 billion or $5.80 per share for the full