Alphabet Inc. (GOOGL.O), the parent company of Google, reported Thursday that it was launching Bard, an artificial intelligence chatbot, in Europe and Brazil, allaying concerns about international regulatory challenges.
When the product was introduced at the stock’s most recent price of $124.73, the stock was on course to post its greatest one-day percentage rise since early February. The shares also rose to their highest point since mid-June throughout the session.
With the S&P 500 (.SPX) up 0.6% on the strength of data indicating hints of decreasing inflation, Alphabet stock outperformed the market as a whole.
Google claimed that it has spoken with them to reassure them on issues pertaining to transparency, choice, and control. Local privacy watchdogs had previously prohibited Bard from coming online in the European Union.
According to Danni Hewson, head of financial analysis at investment firm AJ Bell, Thursday’s spike was influenced by both Bard’s expansion into more languages and its launches in Europe and Brazil.
“There were some concerns about data, about privacy. Clearly they’ve been able to reassure European regulators about those issues, which just paves the way for further advantage really,” said Hewson.
On Thursday, Microsoft, which supports the competing AI ChatGPT, saw a 1.1% increase.
Art Hogan, senior market strategist at B Riley Wealth, claims that the introduction of Bard in Europe and Brazil “marks the product’s most significant expansion since its February launch and pits it against Microsoft Corp.”
The value of Alphabet shares, which are now up roughly 41% for the year, has significantly improved since February as a result of investor interest in generative AI. In 2023 so far, Microsoft stock has increased by 42%.
TD Cowen raised its price target for Alphabet shares from $130 to $140 on Thursday as well, citing the company’s projected improvement in search revenue growth.