A Google Bull Gets More Bullish
11 minutes ago
Oppenheimer analysts raised their price target for Google parent Alphabet (GOOGL) stock after survey data revealed a preference among respondents for the tech giant’s new AI search tools over competitors like ChatGPT.
The broker raised its price target to $220 from $200. Alphabet shares were up 1.6% at around $178 in recent trading.
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An Oppenheimer survey found that 60% of respondents knowledgeable about Google’s AI Mode say its results are more helpful than asking ChatGPT. What’s more, 75% of those who pay for ChatGPT rated AI Mode as more helpful than the OpenAI chatbot.
AI Mode, which rolled out in the U.S. in May, allows users to converse within Google Search the same way they would with ChatGPT, with updated search links provided after each user input. AI Mode appears as a tab beneath the search bar alongside News, Images, and others. Last year, Google launched AI Overviews, which uses AI to generate an answer that appears at the top of users’ search results.
Additionally, more respondents than Oppenheimer expected say they click on AI Mode result links. Google holds roughly 70% of the search advertising market, the analysts noted, making it by far the U.S. leader. Google Search generated $198.09 billion in revenue last year
WPP Stock Tanks as Ad Giant Slashes Outlook
43 minutes ago
An outlook cut and warning about client spending sent shares of advertising giant WPP (WPP) plunging Wednesday.
The London-based firm pointed to “a challenging economic backdrop,” which has caused a “deterioration in performance as Q2 has progressed.” It added that it expects “continued macro uncertainty weighing on client spend and weaker net new business than originally anticipated.”
WPP now sees full-year like-for-like revenue, excluding pass-through costs, down 3% to 5%. Previously, the company predicted it would be flat to 2% lower. In addition, WPP’s new outlook for headline operating profit margin is for a drop of 50 to 175 basis points, compared to the earlier estimate of flat.
CEO Mark Read said that while the company “expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.”
WPP’s U.S.-listed shares were down 18% in recent trading at their lowest level since March 2020.
Nvidia Becomes 1st Company to Hit $4 Trillion in Market Cap
2 hr 7 min ago
Nvidia did it.
The chip giant on Wednesday morning became the first company to see its market capitalization touch $4 trillion intraday, rising above that level when its shares reached $163.93 in early trading. (Market cap markers are sometimes considered “official” only if the shares close above the needed level.)
The stock was recently up 2.2% at $163.40, after rising as high as $164.42 in the opening minutes of the session.
It’s the latest milestone for one of the biggest stock stories in recent years. Nvidia (NVDA) and its shares have effectively become poster children for the AI boom, with the stock in particular being one of the main beneficiaries.
Two other big tech companies—Microsoft (MSFT) and Apple (AAPL)—have market caps above $3 trillion. (You can read our definition of what market cap is and how to calculate it yourself here.)
AES Jumps on Report Company Exploring Possible Sale
2 hr 43 min ago
Shares in AES Corp. (AES) surged 14% in early trading Wednesday, pacing S&P 500 gainers, following a report the renewable energy firm is considering a sale, among other options.
According to Bloomberg, citing people with knowledge of the matter, the company “is exploring options including a potential sale amid takeover interest.” Infrastructure investors including BlackRock’s (BLK) Global Infrastructure Partners unit and Brookfield Asset Management “have been studying AES after the company’s shares lost about half their value over the past two years,” the report said.
AES has signed deals with several tech firms, including Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN), to provide renewable power for data centers.
The power sector has seen heavy interest from acquirers this year as investors bet that the need for power to fuel AI and cryptocurrency mining will boost demand. This year, the infrastructure unit of Blackstone (BX) agreed to buy TXNM Energy (TXNM), the power provider for New Mexico and Texas, for $11.5 billion in cash and debt while Constellation Energy (CEG) struck a deal to buy private energy company Calpine in a deal valued at $26.6 billion.
AES declined to comment. Brookfield and Global Infrastructure Partners didn’t immediately return requests for comment. AES shares entered Tuesday down almost 14% this year.
Intel Levels to Watch After Tuesday’s Big Gain
3 hr 32 min ago
Intel (INTC) shares remain in the spotlight after jumping Tuesday following news the embattled chipmaker plans to slash hundreds of jobs as part of previously announced cuts under a broader restructuring effort.
Coming into today’s session, Intel shares have gained 18% since the start of the year, boosted by hopes that recently appointed CEO Lip-Bu Tan can turn around the fortunes of the once-storied chipmaker and optimism about potential deals, including selling parts of its business. However, the stock has lost just under a third of its value over the past 12 months, weighed down by the company’s failure to capitalize on the booming AI chip market and uncertainty surrounding its strategic direction.
Intel shares rose more than 7% Tuesday to close at their highest level since late March. The stock was down less than 1% at $23.40 in recent premarket trading.
After reclaiming the 200-day moving average (MA) late last month, Intel shares retraced toward the closely watched indicator within a flag, a chart pattern that signals a continuation of the stock’s recent move higher from the floor of a multi-month trading range.
Indeed, the price staged a decisive breakout from the pattern in Tuesday’s trading session, potentially setting the stage for another leg higher. Moreover, the relative strength index confirms bullish price momentum but sits below the indicator’s overbought threshold, proving ample room for further upside.
Investors should watch major overhead areas on Intel’s chart around $26 and $30, while also monitoring support levels near $22 and $19.
Read the full technical analysis piece here.
Major Index Futures Point to Modest Gains
4 hr 11 min ago
Futures tied to major U.S. stock indexes were each up 0.2% in recent trading.
Dow Jones Industrial Average futures
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S&P 500 futures
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Nasdaq 100 futures
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