(Reuters) – Shares in Google parent Alphabet Inc surged 4.9% on Thursday following the announcement of its new artificial-intelligence chatbot, Bard, expanding its presence in Europe and Brazil. This news eased concerns regarding overseas regulatory issues and drove investor confidence.
Trading at $124.73, Alphabet’s stock was on track for its largest one-day percentage gain since February when it revealed the launch of Bard. During the session, the shares reached their highest point since mid-June.
Alphabet shares have outperformed the broader market, with the S&P 500 up 0.6%, thanks to data indicating a decline in inflation rates.
The launch of Bard in the European Union had been delayed due to privacy regulations. However, Google successfully addressed concerns by meeting with watchdogs to provide transparency, choice, and control in relation to privacy issues.
Financial analysis head at investment firm AJ Bell, Danni Hewson, attributed Thursday’s rally to Bard’s expansion into Europe and Brazil, along with its introduction in new languages. Hewson commented, “There were some concerns about data, about privacy. Clearly, they’ve been able to reassure European regulators about those issues, which just paves the way for further advantage really.”
Chief market strategist at B Riley Wealth, Art Hogan, also credited Bard’s launch in Europe and Brazil as the driving force behind Thursday’s rally, noting that it signifies the most significant expansion of the product since its February release and positions it competitively against Microsoft Corp.
Microsoft, the supporter of rival AI ChatGPT, experienced a 1.1% increase in shares on Thursday.
Alphabet shares have seen a substantial boost this year, primarily fueled by investor enthusiasm surrounding generative artificial intelligence, with a 41% increase so far. In comparison, Microsoft shares have risen by 42% in 2023.
Additionally, on Thursday, TD Cowen raised its price target for Alphabet shares from $130 to $140, citing expectations of strong growth in its search business.
(Reporting by Bansari Mayur Kamdar in Bengaluru; writing by Sinéad Carew in New York; Editing by Conor Humphries)
Credit: The Star : Tech Feed
