Ask a question, and Google Bard will provide a quick response. But one thing this artificial intelligence tool from Alphabet (GOOGL) won’t do is give a yes or no answer to this query: Should you buy Google stock now?
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Alphabet puts an emphasis on E-E-A-T — experience, expertise, authoritativeness and trustworthiness. The search, advertising, cloud and now AI giant wants that to apply to powerful AI chatbots as well, including Google Bard.
So when asked if now is a good time to buy Google stock, you’ll get a noncommittal, balanced response. Bard will list some reasons why you might want to invest, including the company’s dominant position in search and innovations in areas such as AI and autonomous driving.
Bard will also outline reasons why you might not want to invest in Google stock, including increasing competition from fellow Magnificent Seven stocks and AI powerhouses like Amazon.com (AMZN) and Microsoft (MSFT). (Tesla (TSLA) did not come up in the response to this same prompt.)
In the end, Google Bard says simply, “ultimately, the decision of whether or not to buy Google stock is up to you.”
Powered by ChatGPT, Microsoft Bing continues to vie with Google Bard for supremacy in this brave new world, with a fundamental difference between the two. According to the MIT Technology Review in March, “unlike Bing Chat, Bard does not look up search results — all the information it returns is generated by the model itself.”
AI Drives Demand For Alphabet, Amazon, Nvidia, Meta And More
Each month, IBD puts out a list of new buys by the best mutual funds.
In August, massive bets on Meta, Tesla and Google stock fueled an AI lovefest among top money managers. In October, huge investments in Meta, Alphabet and Nvidia stock again showed the AI revolution is not over. In November, Amazon topped Nvidia, Meta, Google stock and all other Magnificent Seven stocks, with leading funds scooping up a whopping $16.2 billion worth of AMZN stock.
The table below shows how Alphabet and the other Magnificent Seven stocks stack up in terms of Composite Rating and other key metrics. Google stock earns a strong 97 rating, meaning it is overall outpacing 97% of all stocks in the IBD database.
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|
| Microsoft | (MSFT) | 99 | 97 | 95 | A |
| Meta Platforms | (META) | 99 | 95 | 98 | A |
| Nvidia | (NVDA) | 99 | 99 | 98 | A |
| Alphabet | (GOOGL) | 97 | 97 | 92 | A |
| Apple | (AAPL) | 90 | 91 | 89 | B |
| Tesla | (TSLA) | 88 | 88 | 87 | B |
| Amazon.com | (AMZN) | 88 | 82 | 94 | C |
Google Stock Rebounds Toward New High
Alphabet tumbled after reporting Q3 earnings on Oct. 24, crashing below its 50-day moving average. Cloud-computing sales growth missed targets as the company apparently lost market share to Microsoft as their battle for AI supremacy heats up.
But by Nov. 14, Google stock had rebounded above its 50-day line. Flashing its resilience, the stock held support at that benchmark and bounced off it, potentially setting the stage for a new breakout.
Yet, the damage done by a sharp, initial drop on earnings has dragged Alphabet’s Accumulation/Distribution Rating down to a D+. Its up/down volume ratio stands at a neutral 1.0. Look for those metrics to improve and for the relative strength line to continue trend toward a 52-week high.
Google stock has now established a new 141.22 buy point in a flat base. The AI leader dipped a little above 1% on short trading day Black Friday. Volume was well below average.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
