Alphabet Inc (NASDAQ: GOOGL), the juggernaut behind Google, emerged resilient in 2023, orchestrating a remarkable rebound in its stock price after grappling with challenges in 2022.
Fueled by burgeoning interest in its artificial intelligence (AI) offerings, GOOGL surged alongside other tech titans, together propelling the S&P 500 to two-year highs.
Notably, on December 20, while most mega-cap stocks succumbed to a broader market sell-off, Alphabet defied the trend. While the S&P 500 fell significantly, Alphabet’s stock rose higher, buoyed by news of a significant shake-up in its ad sales unit.
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What happened?
The latest upswing in Alphabet’s shares on Wednesday came following the reports that the tech giant is planning a significant reshuffling at its ad sales department, according to The Information.
Citing sources with knowledge of the matter, the report said Alphabet announced in a department-wide meeting last week it was looking to reorganize a significant part of its 30,000-person ad sales unit. Whether these measures would include layoffs was not disclosed.
The action comes as Alphabet continues to rely more on machine learning and AI solutions to help customers purchase more ads on its flagship search engine, YouTube, and other offerings.
Further, the report also said Alphabet wanted to consolidate staff by reassigning workers at its customer sales department who monitor relationships with major advertisers.
GOOGL stock price analysis
At the time of writing, shares of Alphabet were trading at $138.34, up 1.25% in the past 24 hours. This is the highest GOOGL price since April 2022.
Over the past week, the stock climbed around 3.7%, while its monthly gains sit at 1%.
Year-to-date, the tech giant’s shares are up 55%, fueled by the broader market rally and a surge in demand for digital ad services and AI.
In line with the overall uptrend, predictive AI algorithms at CoinCodex expect Alphabet’s stock to rise to $141.1 on January 1, 2024, suggesting a possible upside of more than 2.1%.
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