© Reuters. FILE PHOTO: The Google LLC logo is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo
By Bansari Mayur Kamdar
(Reuters) – Shares in Alphabet (NASDAQ::) Inc., Google’s parent company, rose 4.9% on Thursday after it said it was rolling out its artificial intelligence chatbot Bard in Europe and Brazil, alleviating concerns about overseas regulatory issues.
The stock was last trading at $124.73 and was on track for its biggest one-day percentage gain since early February when it announced the product. Stocks also hit their highest point since mid-June during the session.
Alphabet shares outperformed the broader market, rising 0.6%, boosted by data showing signs of slowing inflation.
Bard’s EU launch has so far been delayed by local privacy regulators, but Google said it has met with watchdogs to reassure them about issues around transparency, choice, and control.
Danny Hewson, head of financial analysis at investment firm AJ Bell, attributed Thursday’s rally to the launch in Europe and Brazil and Bard’s expansion into new languages.
“There have been some concerns about data and privacy. They’ve obviously been able to reassure European regulators on those issues, which really sets the stage for more benefits,” Hewson said.
Art Hogan, chief market strategist at B Riley Wealth, also attributed Thursday’s rally to the launch of Bard in Europe and Brazil, which he said “marks the most significant expansion for the product since its launch in February and pits it against Microsoft Corporation (Nasdaq). “
Shares of Microsoft, a backer of rival AI ChatGPT, rose 1.1% on Thursday.
Shares of Alphabet, which has seen a huge boost in investor excitement around generative AI since February, are up about 41% so far this year. Microsoft shares are up 42% so far in 2023.
Also Thursday, TD Cowen raised its price target for Alphabet shares to $140 from $130 citing expectations of improved growth in its search business.