Google stock has been performing decently well this year, with a 10% increase in shares as of April 5. However, this growth is lagging behind other tech giants like Nvidia and Meta Platforms who have seen significant increases in stock value. Google’s struggles to monetize generative AI, with employees leaving to start their own companies, have been affecting the stock’s momentum.
Despite having a large amount of cash on hand, Google seems to be struggling to invest in growth opportunities that will drive revenue growth. Speculation about whether Google will charge for AI-powered search or acquire HubSpot to boost advertising market share have been circulating, but it is uncertain whether these moves will be enough to accelerate revenue growth. The company’s recent fourth-quarter report showed disappointment in lower than expected advertising sales and increased spending on technology to power artificial intelligence.
To combat the disappointing ad revenue numbers, Google is making investments into its generative AI technology, adding more powerful models and investing in AI startups. The company is also considering charging customers for its AI-powered search engine to boost revenues. Additionally, there are rumors of a possible acquisition of HubSpot by Alphabet, Google’s parent company, but the deal may have antitrust challenges and may not significantly impact Google’s overall revenue growth.
The possibility of Google charging for its AI-powered search engine has been suggested, with reports indicating that premium features could be offered for a fee. Google may add AI-powered search features to its premium subscription services, while still offering the free search engine with advertisements. The company currently charges a monthly fee for its Google One cloud storage service and is considering putting the Gemini AI assistant-powered search behind a paywall for an additional fee.
Rumors have also circulated about Google potentially acquiring HubSpot, with discussions about the potential price of the deal and concerns about antitrust regulations. If the acquisition were to happen, it could have a minimal impact on Google’s revenue growth based on HubSpot’s current revenue and profitability. Analysts have set a 12-month price target for Google’s stock, indicating limited upside potential for investors. However, the company’s future strategies for monetizing AI and potential acquisitions could impact its stock performance in the long run.
