TLDR:
– Alphabet is an underappreciated stock in the artificial intelligence (AI) space, according to Matt Orton, chief market strategist at Raymond James Investment Management.
– Orton highlights the launch of Alphabet’s AI model called Gemini, which he calls a “game changer” that can be used for customer service engagement, advertising, content creation, and productivity apps.
– He believes Alphabet has one of the best valuations for AI and expects the strength of the U.S. consumer to drive advertising revenue for the company.
– Despite recent dip in Alphabet’s stock, Orton sees it as a high-quality name with a strong balance sheet and suggests buying it on further downside.
The article states that Alphabet, the parent company of Google, is an underappreciated player in the artificial intelligence (AI) space, according to Matt Orton, chief market strategist at Raymond James Investment Management. Orton believes that Alphabet’s AI model called Gemini is a “game changer” and can be used for advanced customer service engagement, advertising, content creation, and productivity apps. He sees Gemini as a significant driver of earnings growth and expanding margins for Alphabet.
Orton also believes that the strength of the U.S. consumer will drive advertising revenue for Alphabet. He sees Alphabet as having one of the best valuations for AI, especially compared to other tech giants. Despite recent dips in Alphabet’s stock price, Orton sees it as a high-quality name with a strong balance sheet. He suggests buying Alphabet if there is further downside.
While Alphabet is part of the “Magnificent Seven” stocks that contributed to the S&P 500’s gains in 2023, the stock has dipped recently. However, analysts covering Alphabet still have a positive outlook on the stock, with an average price target suggesting a potential 13.9% upside.
In conclusion, Orton believes that Alphabet is an underappreciated stock with significant potential in the AI space. He sees the launch of Gemini as a game changer and expects the strength of the U.S. consumer to drive advertising revenue for the company. Despite recent stock price dips, Orton suggests buying Alphabet on further downside, noting its strong balance sheet and attractive valuation.