San Francisco, CA – October 30, 2024:-The shares of Alphabet Inc. ($GOOG) flew high in the pre-market today after reporting robust earnings that were largely attributable to developments in artificial intelligence. It seems users have embraced Gemini sufficiently to boost earnings, based on input from analysts.
Alphabet released Q3 results yesterday after the market closing, reporting profits that surprised Wall Street on the upside and underscored the impact of Gemini on user engagement.
Gemini’s integration with Google services has compounded usage across platforms, boosting interaction time significantly,”
Said Brad Erickson, Equity Research Analyst at RBC.
“This surge shows how AI can re-engage users and increase platform stickiness.”
Alexandru Iliescu, a Google engineer, published a meme on Reddit about how Gemini AI’s site was live and performing well. The AI/content generation tool has been referred to as Google’s own interpretation of OpenAI’s ChatGPT, and it is already making an impression in advertisements.
Gemini aims to streamline the user experience through assisting with tasks like refining search queries and generating personalized content postings.
Backing up its design principles is data from the search company suggesting that Gemini raised the total engagement of its services while also opening up different monetization angles to explore.
Gemini’s success and this earnings beat will be a recent achievement for Alphabet in the context of AI where Meta and Microsoft are also making strides.
Investors’ positive reaction towards this event signifies the market’s support towards Alphabet’s direction as AI expands its capabilities.
Guggenheim analysts estimate that innovations such as AI driven Gemini will be injecting more room for growth in Google’s share price as the company focuses on penetrating more in the developing AI economy.
Shares of $GOOG are sharply higher this morning as earnings beat estimates. Brad Erickson of RBC says new technology such as Google’s Gemini increases engagement and compounds usage: pic.twitter.com/3sNsH7JhkZ
— Squawk Box (@SquawkCNBC) October 30, 2024
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