Alphabet’s stock rises toward a 20-month high, after analyst’s bullish call around GenAI

Shares of Google and YouTube parent Alphabet Inc.
GOOGL,
+1.24%

GOOG,
+1.13%
jumped 3% in afternoon trading Wednesday, enough to pace the S&P 500’s
SPX,
-1.47%
gainers. The internet search behemoth’s stock was on track for the highest close since April 4, 2022, according to Dow Jones Market Data. Analyst Josh Beck resumed coverage of the stock for Raymond James with an outperform rating and $150 stock price target, saying his optimism around near-term search trends and YouTube momentum is somewhat offset by a more balanced stance on returns on generative artificial-intelligence search. “Similar to the Android launch circa 2007 to address the computing interface evolution towards mobile, we see Google facing another platform transition as GenAI potentially gives rise to an embedded OS [operating system] that spans multiple consumer and enterprise platforms,” Beck wrote in a note to clients. The stock has soared 59.6% year to date, while the Communication Services Select Sector SPDR ETF
XLC,
-0.77%
has run up 52.2% and the S&P 500 has advanced 24.4%.