Gemini AI model gaining popularity with big wins for Alphabet, potential stock investment opportunity.

From Nasdaq: 2024-09-28 13:00:00

Alphabet’s Gemini AI model was initially criticized for being difficult for app developers and businesses to use, compared to rivals like OpenAI. However, the company has recently secured big wins. Snap is incorporating Gemini into its chatbot, leading to 2.5 times more engagement from users sending photos and videos. Warner Bros. Discovery will use Gemini for captioning, reducing costs by 50%. Volkswagen is partnering with Alphabet for a new AI smartphone assistant.

Alphabet’s Google Cloud division has seen significant growth, with revenue up 29% to $10.2 billion. The company remains a leader in search, with Apple stating that no amount of money could make it switch from using Google due to Bing’s inferior quality. With Gemini gaining traction and Alphabet’s attractive valuation, now could be a good time to buy the stock.

In considering investing in Alphabet, it’s worth noting that the Stock Advisor team recently identified 10 top stocks, with Alphabet not included. The service has outperformed the S&P 500 since 2002, providing guidance on building a successful portfolio. Past recommendations, like Nvidia in 2005, have yielded impressive returns. Further research and evaluation of current stock picks may be beneficial.

Please note that Suzanne Frey of Alphabet serves on The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, Best Buy, Microsoft, Scotts Miracle-Gro, Volkswagen, and Warner Bros. Discovery. It also recommends United Parcel Service and Volkswagen Ag, with certain options on Microsoft.



Read more at Nasdaq: Gemini AI Is Gaining Traction. Is It Time to Buy Alphabet Stock?