According to the financial news app Smart Finance, based on the latest research report by Loop Capital analyst Rob Sanderson, Meta (META.US) is worth buying, while investors should temporarily hold off on the stock of Google's parent company Alphabet (GOOG.US, GOOGL.US).
In his research note on Tuesday, Sanderson wrote, &#34;With the development of artificial intelligence strategies and the introduction of product work, we are becoming more optimistic about Meta's prospects, while doubts remain about Google's prospects.&#34; Sanderson rates Meta as &#34;buy&#34; with a target price of $550 and rates Alphabet as &#34;hold&#34; with a target price of $170.
Undoubtedly, generative artificial intelligence has swept through the technology sector. Investors are closely watching which companies are investing in artificial intelligence and the plans these companies are pursuing. Some refer to the competition to maximize these investments as an artificial intelligence arms race. In terms of artificial intelligence spending and projects, Meta and Alphabet are among the most watched stocks.
Sanderson pointed out, &#34;Google seems to be extremely busy defending its dominant search position, with traditional search query share being lost to Bing (although not by much but accelerating), and potentially more attention being lost to ChatGPT, Perplexity, and other generative AI alternatives.&#34; Google will also face competition from other artificial intelligence search options, including Apple's Siri after iPhone updates, Amazon's Alexa, and MetaAI.
Google has long been the king of search engines. To maintain this position in a more competitive environment, the company has launched Gemini (formerly known as Bard), its proprietary generative artificial intelligence tool. However, Sanderson and some other Wall Street professionals are concerned that competition could negatively impact Google's market share.
As other companies like Snapchat and TikTok rise in the social media platform space, investors are also paying attention to Meta's competitive landscape. However, Sanderson wrote, &#34;Meta's dominant position and scale in social media have been maintained for over a decade.&#34;
He stated, &#34;Meta has proven itself to be an innovator and an effective fast follower, quickly correcting the direction of product development in the face of competition and market dynamics changes (such as Stories, Reels, early artificial intelligence investments). We believe the company is better suited and battle-tested, able to leverage disruptive technologies and harness significant change.&#34;
As of Wednesday's close, both Alphabet and Meta saw slight increases. Year-to-date, Alphabet has risen by 32%, while Meta has risen by 44%

GOOG

GOOGL

According to the research report from Loop Capital analysts, investors are advised to buy Meta stock and temporarily observe the parent company of Google, Alphabet. Meta has better prospects in the field of artificial intelligence, while Google's outlook has some uncertainties. Meta's stock price has risen by 44% this year, higher than Google's increase. Investors are very concerned about investments and plans in the field of artificial intelligence, with Meta and Alphabet being among the stocks receiving significant attention. Google faces competition pressure in maintaining its search position, which may affect market share

- Loop Capital analyst Rob Sanderson suggests buying Meta (META.US) and advises investors to hold off on Google's parent company Alphabet (GOOG.US, GOOGL.US). Sanderson's research note highlights optimism for Meta's future due to AI strategies and product introductions, while expressing doubts about Google's outlook.
- Sanderson rates Meta as a "buy" with a target price of $550 and Alphabet as a "hold" with a target price of $170. The competition in AI investments and projects intensifies, with Meta and Alphabet among the most watched stocks in this field.
- Google faces challenges in defending its dominant search position against emerging AI alternatives like ChatGPT and Perplexity, while Meta's longstanding dominance in social media remains a focal point for investors. Both Alphabet and Meta saw slight increases in stock value, with Alphabet up by 32% and Meta by 44% year-to-date.

Loop Capital analyst recommends buying Meta as it is beating Alphabet in the AI field,