Third Point’s Major Investment in Alphabet Signals Embrace of AI Dominance in Portfolio

Dan Loeb, from a company called Third Point, has put a lot of money into Alphabet. He thinks that artificial intelligence (AI) will help Alphabet grow. Almost half of Loeb’s investments are in AI stuff.

He believes that Alphabet’s technology and how widely it’s used are important for making AI work well in all its products. Alphabet’s stock has gone up by 17% in 2024, after going up by 58% the year before.

Third Point's Major Investment in Alphabet Signals Embrace of AI Dominance in Portfolio
Tech sector gains 8%, despite valuation worries; focus on dividends and growth potential. (Credits: iStock)

This growth is because Alphabet is getting better at using AI in its products and making more money from them. Loeb decided to put money back into Alphabet after taking a break from it. This shows he believes in Alphabet’s future with AI.

Alphabet, a big tech company, recently said it would start giving out dividends of 20 cents per share and also buy back $70 billion of its shares. This news, along with making more money than expected in the first part of the year, made Alphabet’s shares go up by 10%.

Amazon’s AI strategy scrutinized; AWS, generative AI pivotal after Meta Platforms’ earnings miss. (Credits: iStock)

Even though some people worry that tech companies might be worth too much, investors are still interested in them. The part of the stock market that focuses on technology, called the S&P 500 information technology sector, has gone up by over 8% this year.

Some experts point out that other tech companies like Qualcomm and Broadcom are also giving out dividends and have the potential to grow, showing a trend of tech companies giving back to their shareholders while still trying to grow.

People are watching closely how much money the tech industry is putting into AI (artificial intelligence). Amazon’s next report about how much money it’s making will show how well it’s doing with AI.

Wall Street eyes Amazon’s cloud, and AI plans, and speculates on potential dividends and buyback expansions. (Credits: iStock)

After Meta Platforms didn’t do as well as expected because of worries about AI investments, people are interested in what Amazon is doing with its cloud service AWS and its generative AI technology.

Investors are paying a lot of attention to how much of the market Amazon’s AWS service controls and how successful its AI projects are because that’s important for how much money Amazon makes.

With Alphabet saying it will start giving out dividends, people are starting to think about Amazon more and wonder if it will also start giving out dividends or buy back more of its shares.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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