According to Bank of America Merrill Lynch, Google’s global search share dipped slightly to 89.5%, yet web traffic saw a 1% increase month-over-month. The Gemini app outperformed expectations with a remarkable 27% growth in June, attracting 3.5 million new users. Google’s integration of AI technologies is enhancing user experience and retention, prompting a “Buy” rating with a Target Price of $200, indicating an 11% upside from the current stock price of $179.53. Despite competition from AI tools like ChatGPT, Google maintains a strong market position, with daily web visits peaking at 2.7 billion. Google’s AI capabilities contribute to better search monetization, reinforcing its ecosystem. While ChatGPT experiences rapid user growth, Gemini’s performance showcases Google effectively leveraging AI. Future catalysts include upcoming earnings reports and developments in legal cases. Overall, Google remains a dominant force in the competitive AI search engine landscape, positioning itself for ongoing growth.
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