Alphabet’s (GOOGL - Free Report) Google is constantly making efforts to enhance its messaging application, Google Messages, in a bid to boost its worldwide adoption rate. This is evident from the recent expansion of the Magic Compose feature in the United Kingdom and France.
Initially launched exclusively in the United States, Magic Compose is an artificial intelligence (AI)-based feature of Google Messages. Moreover, Google integrated generative AI capabilities into its Google Messages app with Magic Compose.
The underlined feature reads 20 conversations and generates responses based on user needs. Users can prompt it to write a professional message stating their absence from work.
Additionally, Magic Compose can generate poetic responses or replies in various moods, such as Excited, Chill, Formal and Short replies, or poetic styles like Shakespearean or Lyrical responses.
Google Messages in Focus
Apart from the latest move, the company recently revealed that it has added a new in-app contacts page for Google Messages, replacing the previous method of tapping the photo + name at the top of a conversation.
It is also adding a Material 3 carousel to its Messages app, allowing items to expand and shrink while scrolling, with a display of videos, links and more.
Additionally, Google introduced Photomoji for reactions and stickers on Google Messages, with the app displaying a circular badge over the compose button. Users can add new emojis by long-pressing on SMS or RCS chat.
We believe that all the above-mentioned endeavors will likely strengthen Alphabet’s Android offerings, which, in turn, will boost its Google Services segment, which accounts for the majority of GOOGL’s total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
For 2023, our model projects Google Services revenues at $269.03 billion, reflecting growth of 6.1% year over year.
Growing AI Efforts
Notably, the latest move is in sync with Google’s growing efforts to enhance its product portfolio with AI technology. Moreover, its aggressive stance on generative AI remains noteworthy and is likely to instill investor optimism in the stock.
Shares of GOOGL have surged 60.4% year to date compared with the Zacks Computer and Technology sector’s rise of 52.3%.
Recently, the company introduced Duet AI, which is a code assistance tool that suggests and completes codes for developers in real time.
Further, it launched MedLM, a family of generative AI models intended for the healthcare industry. MedLM uses large language models to enhance its ability to address medical inquiries.
Furthermore, the company unveiled Gemini 1.0, its next-generation foundation model, which can understand, code and combine various media, enhancing reasoning and coding capabilities.
Additionally, Google is set to introduce an AI-powered “Help me write” feature to Chrome for Desktop use. This new AI feature can adjust its writing style, including Shorten or Elaborate options, as well as Casual or Formal options, with fewer options than Docs or Messages.
All these efforts are likely to aid Alphabet to capitalize on the growth prospects present in the booming generative AI space.
A report by Fortune Business Insights suggests that the market is expected to hit $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.
Zacks Ranks and Other Stocks to Consider
Currently, Alphabet carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology sector are Kanzhun (BZ - Free Report) , Ceridian HCM and CommVault Systems (CVLT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kanzhun's fourth-quarter 2023 earnings has been revised downward by 2 cents to 16 cents per share in the past 30 days. For fiscal 2023, earnings estimates have decreased by a penny to 64 cents per share in the past 30 days.
BZ's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 117.73%. Shares of BZ have declined 22.4% year to date.
The Zacks Consensus Estimate for Ceridian HCM’s fourth-quarter fiscal 2023 earnings has been revised by a penny northward to 32 cents per share in the past 60 days. For fiscal 2023, earnings estimates have increased 10 cents to $1.33 in the past 60 days.
CDAY’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, while missing the same on one occasion, the average surprise being 27.20%. Shares of CDAY have gained 4.4% year to date.
The Zacks Consensus Estimate for CommVault Systems’ third-quarter 2024 earnings has remained unchanged for the past 90 days at 73 cents per share. For fiscal 2024, earnings estimates have been revised 4 cents upward to $2.89 per share in the past 60 days.
CVLT’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, while missing the same on one occasion, the average surprise being 6.38%. Shares of CVLT have surged 27.2% year to date.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Alphabet’s (GOOGL - Free Report) Google is constantly making efforts to enhance its messaging application, Google Messages, in a bid to boost its worldwide adoption rate. This is evident from the recent expansion of the Magic Compose feature in the United Kingdom and France.
Initially launched exclusively in the United States, Magic Compose is an artificial intelligence (AI)-based feature of Google Messages. Moreover, Google integrated generative AI capabilities into its Google Messages app with Magic Compose.
The underlined feature reads 20 conversations and generates responses based on user needs. Users can prompt it to write a professional message stating their absence from work.
Additionally, Magic Compose can generate poetic responses or replies in various moods, such as Excited, Chill, Formal and Short replies, or poetic styles like Shakespearean or Lyrical responses.
Google Messages in Focus
Apart from the latest move, the company recently revealed that it has added a new in-app contacts page for Google Messages, replacing the previous method of tapping the photo + name at the top of a conversation.
It is also adding a Material 3 carousel to its Messages app, allowing items to expand and shrink while scrolling, with a display of videos, links and more.
Additionally, Google introduced Photomoji for reactions and stickers on Google Messages, with the app displaying a circular badge over the compose button. Users can add new emojis by long-pressing on SMS or RCS chat.
We believe that all the above-mentioned endeavors will likely strengthen Alphabet’s Android offerings, which, in turn, will boost its Google Services segment, which accounts for the majority of GOOGL’s total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
For 2023, our model projects Google Services revenues at $269.03 billion, reflecting growth of 6.1% year over year.
Growing AI Efforts
Notably, the latest move is in sync with Google’s growing efforts to enhance its product portfolio with AI technology. Moreover, its aggressive stance on generative AI remains noteworthy and is likely to instill investor optimism in the stock.
Shares of GOOGL have surged 60.4% year to date compared with the Zacks Computer and Technology sector’s rise of 52.3%.
Recently, the company introduced Duet AI, which is a code assistance tool that suggests and completes codes for developers in real time.
Further, it launched MedLM, a family of generative AI models intended for the healthcare industry. MedLM uses large language models to enhance its ability to address medical inquiries.
Furthermore, the company unveiled Gemini 1.0, its next-generation foundation model, which can understand, code and combine various media, enhancing reasoning and coding capabilities.
Additionally, Google is set to introduce an AI-powered “Help me write” feature to Chrome for Desktop use. This new AI feature can adjust its writing style, including Shorten or Elaborate options, as well as Casual or Formal options, with fewer options than Docs or Messages.
All these efforts are likely to aid Alphabet to capitalize on the growth prospects present in the booming generative AI space.
A report by Fortune Business Insights suggests that the market is expected to hit $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.
Zacks Ranks and Other Stocks to Consider
Currently, Alphabet carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology sector are Kanzhun (BZ - Free Report) , Ceridian HCM and CommVault Systems (CVLT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kanzhun's fourth-quarter 2023 earnings has been revised downward by 2 cents to 16 cents per share in the past 30 days. For fiscal 2023, earnings estimates have decreased by a penny to 64 cents per share in the past 30 days.
BZ's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 117.73%. Shares of BZ have declined 22.4% year to date.
The Zacks Consensus Estimate for Ceridian HCM’s fourth-quarter fiscal 2023 earnings has been revised by a penny northward to 32 cents per share in the past 60 days. For fiscal 2023, earnings estimates have increased 10 cents to $1.33 in the past 60 days.
CDAY’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, while missing the same on one occasion, the average surprise being 27.20%. Shares of CDAY have gained 4.4% year to date.
The Zacks Consensus Estimate for CommVault Systems’ third-quarter 2024 earnings has remained unchanged for the past 90 days at 73 cents per share. For fiscal 2024, earnings estimates have been revised 4 cents upward to $2.89 per share in the past 60 days.
CVLT’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, while missing the same on one occasion, the average surprise being 6.38%. Shares of CVLT have surged 27.2% year to date.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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