Shares of Google closed up 5% Thursday, a day after the company announced its latest artificial intelligence model called Gemini that will compete with products from OpenAI, Microsoft and Meta .
But Wells Fargo's trading desk also said the big question is what Google's monetization for Gemini looks like.
"In short, I'd summarize GOOG as proving that they still have some bite."
Analysts at Bank of America said Wednesday that Alphabet has been under pressure from concerns over Google's AI capabilities this year, so a "well-branded," competitive model could have upsides for its consumer search activity and Cloud enterprise sales.
"We think Google has strong AI capabilities, and data suggesting that Google has best in class, proprietary, AI capabilities can be positive for the shares in 1H'24," the analysts wrote in a note.
Persons:
Wells
Organizations:
Google, Microsoft, Meta, Bank of America, 1H