Brad Gerstner of Altimeter Capital Management, an investment firm, has shown faith in stocks of electric vehicle (EV) titan Tesla (NASDAQ:TSLA) and technology giant Alphabet (NASDAQ:GOOGL). Despite recent negative developments surrounding both companies, Gerstner has picked up stakes in them and remains optimistic about their growth prospects.
Notably, Alphabet has faced setbacks with its Gemini Artificial Intelligence (AI) image generator and temporarily shut it down. At the same time, Tesla is grappling with soft demand trends and heightened competition, which is weighing on its top line and margins.
Gerstner sees substantial monetization opportunities for Alphabet. Despite the recent setback with its AI image generator tool, structural changes, focus on enhancing the AI capabilities, and the reintroduction of Gemini AI picture generator provide a solid premise for recovery in GOOGL stock. As for Tesla, Gerstner expresses faith in Elon Musk’s leadership and the company’s progress in full self-driving technology. Additionally, Gerstner observes that the recent dip in TSLA stock suggests that the negatives are already factored into its price.
Is Alphabet Stock a Buy, Sell, or Hold?
Alphabet stock is up about 8% year-to-date. However, it underperformed its large tech peers, including Amazon (NASDAQ:AMZN), Microsoft (NASDAQ: MSFT), and Meta (NASDAQ:META). Nonetheless, Wall Street analysts are bullish about its prospects.
Alphabet stock has 29 Buys, and eight Holds for a Strong Buy consensus rating. Analysts’ average GOOGL stock price target of $165.37 implies 9.61% upside potential.
Is Tesla a Buy or Sell?
Tesla stock is down about 29% year-to-date and is among the worst-performing S&P 500 stocks. Despite this pullback, concerns around volumes, margins, and valuation keep analysts sidelined.
With 10 Buys, 18 Holds, and six Sell recommendations, Tesla stock has a Hold consensus rating. Analysts’ average TSLA stock price target of $207.74 implies 15.52% upside potential.
