Closing Bell: Alphabet Gains, Apple Slides, Target Under Pressure
May 21, 2025
Alphabet is on the rise, gaining 5.6% after announcing its AI mode in search, signaling a robust shift to compete in the AI space. In contrast, Apple's shares fell following OpenAI's acquisition of a startup co-founded by Jony Ive, potentially reshaping the hardware market. The podcast also highlights challenges faced by Target and other retailers amidst changing consumer behavior and economic pressures. Overall, it offers an engaging analysis of market trends affecting tech and retail giants.
07:11
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Alphabet's AI Search Push
Alphabet is pushing AI integration into its core search business as a paid feature called "AI mode."
This move aims to help Alphabet keep up with AI rivals and redesign its search product effectively.
insights INSIGHT
Apple Misses AI Hardware Wave
Apple's shares dropped due to OpenAI's acquisition of an AI device startup founded by ex-Apple designer Jony Ive.
This highlights Apple's relative absence in the AI hardware boom recently.
insights INSIGHT
Target's Sales Woes Persist
Target's shares plunged after cutting its sales forecast amid weaker consumer spending and tariffs.
Target's underperformance contrasts with competitors like Walmart, showing struggles in its turnaround efforts.
Get the Snipd Podcast app to discover more snips from this episode
Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Alix Steel, Scarlet Fu, Carol Massar and Tim Stenovec.
Alphabet (GOOGL) shares gained after the company said it will offer “AI mode” in search to all US users, showing its commitment to redesigning its core business to keep pace with new rivals in the artificial intelligence age. “We want to get our best models into your hands,” Chief Executive Officer Sundar Pichai said Tuesday at the company’s developer conference in Mountain View, California. “So we are shipping faster than ever.” Alphabet’s stock rose much as 5.6% on Wednesday after some analysts expressed confidence that the company can reorient its search product.
Apple (AAPL) shares slumped on the news that OpenAI will acquire an AI device startup co-founded by former Apple veteran Jony Ive in a nearly $6.5 billion all-stock deal, joining forces with the legendary designer to make a push into hardware. The purchase — the largest in OpenAI’s history — will provide the company with a dedicated unit for developing AI-powered devices. Acquiring the secretive startup, named io, also will secure the services of Ive and other former Apple designers who were behind iconic products such as the iPhone. For the British-born designer, the move marks a high-profile return to a consumer technology industry he helped pioneer. Working for years alongside Steve Jobs, he crafted the look and feel of the modern smartphone, in addition to the iPod, iPad and Apple Watch. He left Apple in 2019.
Target (TGT) shares fell today after it cut its sales forecast following a sharp pullback in consumer spending and a hit from tariffs and boycotts. The report raised questions over CEO Brian Cornell’s ability to recapture growth after two years of choppy results — especially as economic turbulence is growing. “It’s a great brand. It’s actually a great company. It just looks to us like it needs a new leadership,” said Bill Smead, chief investment officer of Smead Capital Management, which has owned the stock since 2017.Target’s current management has struggled to navigate through cultural and political landscapes, Smead said, referring to the backlash around its Pride collection in 2023 and boycott calls after the company decided to halt diversity initiatives this year.
Stock Movers