Alphabet Inc (GOOGL) Machine Learning/Artificial Intelligence Capabilities are its Key Competitive Edge: Top Analyst
Alphabet Inc (NASDAQ:GOOGL) is basking in the glow of its prodigious new hardware launch event two days prior where the tech giant not only announced a new Pixel smartphone that will compete with the likes of Apple’s iPhone and Samsung’s Galaxy, but Alphabet also offered new details on its voice-enabled smart device Home.
Believing GOOGL’s newest launch showcases the giant’s victories in both machine learning (ML) as well as artificial intelligence (AI), Baird top analyst Colin Sebastian reiterates an Outperform rating on shares of GOOGL with a $900 price target, which represents a 12% increase from where the stock is currently trading.
Noting that the giant is “flexing ML/AI muscles with Home and Pixel,” the analyst contends, “We note that Pixel also marks the next step in Google’s ever-changing smartphone strategy, building on the success of Nexus and the broader Android ecosystem with the first internally controlled devices encompassing both hardware and software.”
“As AI/Machine Learning emerge as the next ‘computing wave,’ Google’s virtual assistant sits at the core of both Pixel and Home, and showcase the focus at the intersection of hardware and software. We continue to believe that Google’s ML/AI capabilities are a key competitive differentiator, often overlooked by investors,” Sebastian concludes.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Colin Sebastian has achieved a high ranking of #10 out of 4,190 analysts. Sebastian upholds a 76% success rate and earns 19.9% in his annual returns. When recommending GOOGL, Sebastian gains 16.0% in average profits on the stock.
TipRanks analytics indicate GOOGL as a Strong Buy. Based on 34 analysts polled in the last 3 months, 33 rate a Buy on GOOGL, while 1 issues a Sell. The 12-month price target stands at $944.92, marking a nearly 18% upside from where the shares last closed.