Alphabet Inc. (NASDAQ: GOOG, GOOGL) saw its stock rise by 2% on Tuesday morning, following President Trump’s executive order that revoked a prior regulation from former President Biden regarding AI safety standards. This change may reduce costs for Alphabet, as it no longer needs to comply with requirements to share safety test results with the U.S. government before releasing AI products.
The implications of this order suggest potential for cost savings and expanded opportunities for AI use, affecting companies like Microsoft, Amazon, and OpenAI alongside Alphabet. As investors consider the company’s current 25.5 P/E ratio and a projected 17% long-term earnings growth, some analysts are wary, noting that Alphabet’s high cash flow costs may indicate it’s not the best buy at this time.
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