18th March, 2024 – Portfolio holdings Google (GOOG) (Purchased 0.8 units @ $133.93) and Apple (AAPL) (Purchased 0.6 units @ $183.96) had a positive run on Monday, rising 4.60% and 0.64% respectively. This came following a Bloomberg article outlining the possibility of a partnership between Google’s Gemini AI and Apple’s iPhone’s.
Both tech firms have had a tough start to the year, with Alphabet underperforming the Market and Apple being in the negative year to date. The Cupertino based firm has recently made the shift from building the Apple Car to working on Generative AI, meaning a large amount of funding has rendered itself available to focus on integrating and developing Artificial Intelligence for iPhones. Not a definitive win, but definitely a step in the right direction to commence a turnaround.
Alphabet, on the other hand, has been looking for a way to monetise their AI. After being beaten by Microsoft and their powerful startup, OpenAI, this could be a major leap toward catching up to their Washington State based competitors. Analysts at a well known US bank have opined that the opportunity for the Palo Alto based company could be valued around $4.8 billion in extra revenue, successfully raising EPS by 9 cents.
Author: Stefano Rizzi