According to a report published by J.P. Morgan Chase, Alphabet's stock price has failed, falling 2% from the beginning of the year. Compared with the S&P 500 index rising 8% during the same period, Meta has increased by 42%. Investors are frustrated by the company's recent large-scale language model Gemini. The bank anticipates uncertainty about the growth and positioning of search in the future generative artificial intelligence (GenAI) world, lacking clear goals in redesigning the cost structure, and requiring greater return on capital (including dividends), and in contrast to Meta, everything that Meta seems to be doing is quite right.

Despite this, the bank believes Google can get Gemini back on track and begin to close the gap with Microsoft (MSFT.US) and OpenAI in terms of generative artificial intelligence. At the same time, in the second year of redesigning the cost structure, the company will further record revenue and increase return on capital, which may include dividends. The bank's target price for Alphabet was raised from $160 to $165, maintaining the “Overweight” rating.