Google AI Overviews is making waves across the tech and advertising world, helping drive a notable uptick in Alphabet’s stock price while lifting the performance of other major adtech and AI-focused companies.
Shares of Alphabet, the parent company of Google, soared over 4% to reach above $166 on Friday before settling slightly lower. The rally followed Thursday’s strong earnings report, where CEO Sundar Pichai highlighted that growth in Google Search was fueled by rising engagement with AI-powered features — especially Google AI, which now boasts 1.5 billion monthly users, less than a year after its debut.
Companies heavily invested in digital advertising and AI also saw a bump, with Meta Platforms, Pinterest, Snap, and AppLovin posting gains. Analysts from firms like Citi, Wedbush, and Bank of America raised their price targets for Alphabet, emphasizing the untapped potential of tools such as Google AI Overviews and AI-based cloud services.
Google AI Overviews Signals Search Evolution
The overwhelming response to Google AI Overviews indicates a fundamental shift in how users interact with search results. Instead of static links, the feature offers AI-generated summaries that improve both speed and usability — two factors that are clearly resonating with users on a global scale.
Following Alphabet’s earnings, optimism is spreading to similar players in the tech space. Snap is set to report next Tuesday, with Meta and Microsoft following on Wednesday and Amazon on Thursday. AppLovin and Pinterest are expected the week after. With Google AI Overviews setting the tone, Wall Street appears increasingly bullish on AI-fueled innovation across the board.
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Source: www.investopedia.com
