As you’re surely aware, September was a challenging month for technology businesses, including Google and YouTube parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). However, GOOG stock can still finish 2023 on a strong note. Indeed, now is the time to be a buyer, not a seller.
As we’ll see, Alphabet is relentlessly pushing the envelope with generative artificial intelligence technology.
Alphabet is selling more smartphones than you might think. So, be prepared to hold your share position in Alphabet at least until the end of the year.
This Event Could Propel GOOG Stock Higher
GOOG stock lost ground in September, but there may be an October surprise in store. That’s because Alphabet should release its third-quarter 2023 earnings results on Oct. 24.
Compared to Wall Street’s forecasts, the company posted EPS beats in the first and second quarters. Alphabet earned $1.44 per share in Q2. Analysts expect the company to have earned that same amount, $1.44 per share, in the third quarter.
It’s impressive that Alphabet earned that amount during the second quarter, when inflation was a serious problem. Hence, it’s easy to envision Alphabet having earned at least $1.44 per share in Q3.
The company’s strong second-quarter results helped to fuel a summertime rally in GOOG stock. Don’t be too surprised, then, if the stock breaks above the 2021 resistance level of $150 in October and November of this year.
Alphabet, Generative AI and Smartphones
With many financial traders obsessing over OpenAI’s ChatGPT chatbot, I suspect that some of them are ignoring Alphabet. That’s a mistake, though, as Alphabet remains a fierce competitor in the generative AI arms race.
For instance, YouTube recently added AI-powered features for the platform’s video creators.
Now, content producers can use AI-enhanced tools to edit videos, discover data/insights and streamline the video-making process.
In addition, Google just made its conversational/generative AI feature, known as Search Generative Experience, available to teenagers. Thus, teens are no longer restricted from accessing SGE’s AI-generated search suggestions, prompts and answers.
Finally, I’d like to hit you with a startling fact. Believe it or not, Alphabet reported net-positive Q2 2023 sales for its Google Pixel smartphone.
During that same quarter, global smartphone sales declined 10% and even the almighty Apple (NASDAQ:AAPL) suffered a decrease in smartphone shipments. Also, the Google Pixel is apparently taking market share from Apple’s iPhone in Japan.
Expect GOOG Stock to Make a Run at $150 Soon
The point is, it’s a mistake for investors to obsess over ChatGPT and Apple while ignoring Alphabet. As 2023 enters its final months, Alphabet remains a strong contender in the areas of generative AI technology and smartphones.
Also, October should be an important month for Alphabet as the company could easily beat Wall Street’s quarterly EPS forecast.
Therefore, I recommend buying GOOG stock today as it will probably clear the $150 resistance level by the year’s end.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
