Source: Finance Association
① Google C's stock price rose 1.99% on Thursday, with a total market capitalization of 1.991 trillion US dollars, and is already at the door of the “2 trillion dollar market capitalization club”; ② The market's focus is on the first quarter earnings report scheduled to be announced by Google in two weeks and the May developer conference.
Overnight, the Nasdaq Composite Index, which is dominated by technology stocks, rose 1.68% to lead the three major US stock indices. While closing at record highs, it also recorded its best single-day performance in nearly two months.
As the backbone of the US stock technology sector, the “Magnificent 7” (Magnificent 7) rose across the board, with a cumulative overnight increase of about 324 billion US dollars (about 2.3 trillion yuan). Among them, Apple and Nvidia performed the best, closing up 4.33 and 4.11%, respectively.
Google C shares also rose 1.99% to close at $160.79 per share. At this price, Google's parent company Alphabet has a total market value of 1.99 trillion US dollars and is already at the door of the “2 trillion dollar market capitalization club.”
If it breaks through this hurdle, there will be a historic scene for US stocks — which simultaneously own four companies with a market capitalization of more than $2 trillion: Microsoft, Apple, Nvidia, and Google.
At the beginning of March this year, Google fell to a low of around $132 during the year. At the time, the market feared that the company might be in a backward position in the field of artificial intelligence. The images generated by its large model were extremely controversial and the function was shut down. Even Google co-founder Sergei Brin admitted that “we completely messed up the image generation.”
However, since then, the overall stock price has risen steadily. According to media analysis, investors have once again become optimistic about Google's AI strategy. A month ago, news broke that Apple plans to integrate Google's Gemini artificial intelligence engine into the iPhone, hoping to compete fiercely with the current leading OpenAI and its partner Microsoft.
At the “Google Cloud Next” annual conference this week, the company released a series of AI product updates for cloud computing customers, and also launched a new CPU “Google Axion” designed for data centers and customized based on the ARM architecture to reduce the operating costs of cloud computing.
Now, the market's focus is on Google's first-quarter earnings report, which is due to be released in two weeks, and the May developer conference. Although the company's path to monetizing artificial intelligence remains unclear, the stock's low valuation relative to other tech giants makes it attractive to many on Wall Street.
Bank of America analyst Justin Post wrote in a report earlier this week, “Google's hardware advancements, Gemini's advancements, and AI-driven application demonstrations should help boost people's confidence in their AI capabilities. Given AI's credibility and room for growth, we think the cloud division will be a positive driver for the stock.”
Sylvia Jablonski, CEO of Defiance ETF, said that although some news isn't very Google-friendly, the company's role in generative artificial intelligence products will bring huge growth opportunities to the stock.
She added that Alphabet's other businesses are also expected to benefit from AI tools. For example, these tools can support more accurate advertising to increase advertising revenue.
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