Alphabet (GOOG) opened sharply higher in Wednesday morning’s trade at over $182. By the end of the day, GOOG stock closed at $176.14, up by 2.92%. The search giant’s revenue from advertising was too good to overlook.
Analysts reiterated their buy rating on GOOG stock. They set upside price targets of at least 20%. The AI product cycle will rise from the established Google Search and Cloud offerings.
GenAI will become a more prominent driver of Alphabet’s AI offering. Additionally, it increases the usage rates of the Google search engine. As a result, Google may leverage its infrastructure, lower operating costs, and increase user traffic.
Investors should expect both YouTube and the search business will attract higher advertising revenue.
Investors may look at Applovin (APP) and The Trade Desk (TTD) for higher-growing firms in the ad platform space.
Google remains a leader in the AI space.
Super Micro Computer (SMCI) shares took a turn for the worst. Bulls excitedly bought the stock after the company split shares ten-for-one. But on October 30, SMCI’s auditor, Ernst and Young, resigned.
SMCI lacks an easy path to get the 10-K filing it needs. Without it, the firm risks a delisting. The auditor is insinuating that SMCI has accounting problems. It will increase scrutiny of the company’s financial statements.
SMCI is now at risk of falling to multi-year lows. It also risks losing customers.