By Today, there are some interesting developments in the world of tech stocks:
Alphabet’s Renaming to Gemini
Alphabet, the parent company of Google, has recently rebranded its AI division as Gemini. This move has garnered a mixed response from investors. However, considering that previous major announcements like the introduction of the Bard chatbot led to a drop in stock value, the mild reaction is expected and shouldn’t cause too much concern.
But the name change isn’t the only thing on offer from Alphabet. They are also launching new mobile versions of Gemini AI and a more advanced subscription plan at a higher price point. These initiatives highlight two important trends: making AI accessible on smartphones and gauging user willingness to pay for advanced AI technology.
Market Response
In early trading, Alphabet’s shares saw a 0.3% increase, while Microsoft’s shares dipped by 0.2%. This suggests that the stock market is currently taking a wait-and-see approach to assess the impact of these latest offerings on the ongoing AI battle.
Interestingly, Big Tech companies such as Apple, Amazon.com, and Nvidia also experienced slight dips in early trading on Thursday. While this may be seen as a recurring phenomenon in recent days, it’s important not to overreact. Investors seem to be taking a breather and evaluating the situation. It’s worth noting that the ITechnology Select Sector SPDR exchange-traded fund saw a 0.3% increase amidst these fluctuations.
Stay tuned for more updates on the tech stock market.
The Magnificent Seven Targets Remain High
According to ING analyst Chris Turner’s research note, the consensus price targets of the ‘magnificent seven’ have remained significantly above last night’s closing levels. Among them, Apple has a target that is 6% higher and Amazon has a target that is 20% higher. Only Nvidia has a lower price target, which has been trailing behind the recent 50% rally since last summer.
Traditional Retail Faces Amazon’s Competition
While AI dominates the news headlines, traditional retail competition is also taking on Amazon. The Wall Street Journal reported that Shein, a Chinese fast-fashion company, and the shopping unit of TikTok, owned by China’s ByteDance, are actively recruiting former and current Amazon employees to expand their operations in the United States.
Amazon Enlists Allies to Match TikTok
Despite facing new rivals, Amazon has successfully thwarted numerous challenges in the past. To counter TikTok’s unique blend of social media and shopping, Amazon has partnered with Meta Platforms and Snap, the owners of Snapchat.
Monolithic Power Systems Thrives on AI
Monolithic Power Systems is currently in the spotlight, experiencing a nearly 7% surge in early trading after surpassing earnings expectations and providing an optimistic outlook. Analysts attribute this success to Monolithic Power Systems’ involvement in AI servers and other hardware, further solidifying its position in the market.
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