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The Evolution of AI Stocks: A Look at Meta Platforms Inc. and Alphabet Inc.

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The realm of Artificial Intelligence (AI) is expanding at an unprecedented pace, ushering in technologies that mirror human intelligence, enhance efficiencies, and tackle intricate challenges. From cutting-edge robotics in manufacturing to predictive algorithms in finance and personalized healthcare solutions, AI applications span various industries. As society integrates AI into daily life, companies spearheading these innovations are captivating the attention of investors. AI stocks epitomize a spectrum of enterprises at the forefront of developing, implementing, or leveraging AI technologies across different domains.

Investing in AI equities presents a promising avenue for substantial growth owing to the transformative potential of AI technologies across global sectors. These investments hold the promise of handsome returns as AI drives productivity enhancements, creates fresh markets, and disrupts conventional business paradigms. Nonetheless, the dynamic nature of the AI sector poses challenges such as rapid technological advancements, fierce competition, and regulatory ambiguities. Furthermore, the hefty costs associated with AI research and development can strain financial reserves, impacting short-term profitability and stock performance.

The Time is Ripe to Focus on AI Stocks

Before delving into AI stocks, meticulous due diligence is imperative for investors. Scrutinizing a company’s innovation prowess, market standing, and financial robustness can offer insights into its potential for sustained success. Given the speculative nature of investing in nascent technologies like AI, a prudent approach is advisable. Staying abreast of industry trends, technological progress, and regulatory shifts is essential for effectively navigating the AI investment terrain. With that backdrop, let’s shine the spotlight on two AI stocks commanding attention in the market today.

Meta Platforms Inc. (META)

Kicking off our exploration, Meta Platforms Inc. (META), previously known as Facebook Inc., is a global tech conglomerate dedicated to crafting products that facilitate connectivity and sharing via mobile devices, PCs, virtual reality headsets, and in-home gadgets. The company’s roster boasts renowned platforms like Facebook, Instagram, WhatsApp, and Oculus, to name a few.

Earlier this month, Meta disclosed its financial results for the first quarter of 2024. Following the market closure on April 24, 2024, the company slated a conference call for 2 p.m. PT / 5 p.m. ET on the same day to discuss the outcomes. This event, shedding light on Meta’s first-quarter financial performance, will be accessible via a live webcast on the Meta Investor Relations website, offering stakeholders and enthusiasts insights into the company’s financial health and operational trajectory.

Year-to-date, META stock has surged by an impressive 50.35%. Furthermore, during Thursday morning’s trading session, Meta stock saw a 2.67% uptick, opening at $520.25 per share.

META stock chart
Source: TradingView

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Exploring Alphabet Inc. (GOOGL Stock)

Following our Meta examination, Alphabet Inc. (GOOGL), the parent entity of Google and several former Google subsidiaries, warrants attention. Alphabet now functions as a conglomerate overseeing a diverse array of businesses. These encompass Google, Google Cloud, self-driving technology (Waymo), and more.

Earlier in the year, Alphabet unveiled its financial and operational results for the fourth quarter of fiscal year 2023. Specifically, the tech behemoth reported earnings of $1.64 per share and revenue of $86.31 billion for Q4 2023. Simultaneously, Wall Street’s projections for the quarter stood at an EPS of $1.60 per share alongside revenue estimates of $85.26 billion, with revenue climbing 13.49% year-over-year.

As of the year-to-date period, Alphabet stock has appreciated by 10.31%. Furthermore, during Thursday’s morning trading session, GOOGL shares witnessed a 1.65% descent, trading at $153.79 per share.

GOOGL stock chart
Source: TradingView

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The opinions articulated in this piece belong to the author alone and may not necessarily mirror Nasdaq, Inc.’s perspectives.

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