In this article, we will take a look at the 5 stocks with AI catalysts in 2023. To see more such companies, go directly to 10 Stocks with AI Catalysts in 2023.
5. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 57
Expedia Group, Inc. (NASDAQ:EXPE) is another travel-related stock that Morgan Stanley believes could move on the back of new AI-related features as the firm expects the company to announce next-generation features sometime in the future.
Expedia Group, Inc. (NASDAQ:EXPE)’s management talked about how the company is starting to deploy AI into its applications in a latest earnings call:
“We have already moved 100% of our verbal U.S. web traffic to the platform and our on-track to complete the migration during the fourth quarter. As we’ve explained before, we expect some modest headwinds to conversion as we transition, but ultimately the payoff is well worth it with better conversion, increased feature velocity, and ultimately better performance from verbal overall. Our single-tech strategy is designed to give all of our brands the benefit of our entire suite of product features, including our latest advancements in AI and machine learning, to personalize and enhance the customer experience. On the topic of AI, earlier this year, we launched conversational trip planning, powered by ChatGPT and the Expedia iOS app. And last month, we launched it on the Expedia Android app.” Read the full earnings call transcript here.
Aristotle Atlantic Core Equity Strategy made the following comment about Expedia Group, Inc. (NASDAQ:EXPE) in its first quarter 2023 investor letter:
“Expedia Group, Inc. (NASDAQ:EXPE) provides online travel services for leisure and small business travelers. The company offers a wide range of travel shopping and reservation services, as well as provides real-time access to schedule, pricing and availability information for airlines, hotels and car rental companies. Expedia serves customers worldwide.
We see Expedia benefiting from the growth of booking travel online, both for leisure and in corporate travel. The company also benefits from rapid growth in alternative accommodations, vacation home rental, through VRBO. The main sources of revenue and profitability are from hotel and vacation home rental. Additionally Expedia has exposure to airline ticket sales and automobile rentals. Post the COVID-19 pandemic, Expedia’s debt has been reduced and share repurchase has resumed and we would expect a dividend to be reinstated.”
4. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 58
Chatter in gaming circles is growing that Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s incoming GTA 6 would be AI-heavy, as the company is expected to use advanced AI in non-player characters (NPCs), overall game dynamics, traffic, and other parts of the game. Perhaps that’s why Morgan Stanley said the launch of the game could be an AI catalyst for Take-Two Interactive Software, Inc. (NASDAQ:TTWO). Take-Two Interactive Software, Inc. (NASDAQ:TTWO) shares have gained about 19% over the past one year.
As of the end of the second quarter of 2023, 58 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Take-Two Interactive Software, Inc. (NASDAQ:TTWO). The biggest stakeholder of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) during this period was Chase Coleman and Feroz Dewan’s Tiger Global Management LLC which owns a $703 million stake in the company.
Diamond Hill All Cap Select Strategy made the following comment about Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in its Q4 2022 investor letter:
“Video game developer Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has faced weakness in the mobile gaming market, in addition to game-launching delays. The company reported underwhelming quarterly results in Q4 and lowered its full-year guidance. After reexamining our long-term thesis, we decided to exit our position in favor of more attractive opportunities.”
3. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 78
Morgan Stanley believes Booking Holdings Inc. (NASDAQ:BKNG) could announce AI features integration with its platforms in the future and that could become a catalyst for the company.
As of the end of the second quarter of 2023, 78 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Booking Holdings Inc. (NASDAQ:BKNG). The biggest stakeholder of Booking Holdings Inc. (NASDAQ:BKNG) during this period was Guardian Capital’s GuardCap Asset Management which owns an $850 million stake in the company.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 204
Morgan Stanley in August said that upcoming catalysts for Google in the AI domain include Alphabet Inc. (NASDAQ:GOOGL)’s Gemini LLM release and the availability of generative search experience. Morgan Stanley had also called Google Next event that was scheduled to take place on August 29 as a catalyst event. The event did turn out to be pretty impressive as Alphabet Inc. (NASDAQ:GOOGL) revealed several products, including several feature software features for Cloud and AI.
Alphabet Inc. (NASDAQ:GOOGL) is one of the most popular stock among the 910 hedge funds tracked by Insider Monkey. 204 hedge funds in our database have stakes in Alphabet Inc. (NASDAQ:GOOGL). The biggest stakeholder of Alphabet Inc. (NASDAQ:GOOGL) include Natixis Global Asset Management’s Harris Associates which owns a $3.2 billion stake in the company.
Artisan Global Value Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2023 investor letter:
“Our best performing stocks this quarter were Meta, Alphabet Inc. (NASDAQ:GOOG) and Heidelberg Materials. The rise in Alphabet’s share performance was primarily driven by the AI frenzy. Earlier this year, there were some doubts about Alphabet’s ability to compete with OpenAI’s ChatGPT product. This was a bit ironic since Alphabet has been using AI technology to improve its Google search results and advertising business for years. Indeed, the technology that underpins OpenAI’s ChatGPT actually came from Alphabet more than five years ago. But sometimes the market needs a reminder, and Alphabet provided tangible evidence of its capabilities. At a recent developer conference, it launched Bard, a consumer-oriented generative AI version of its search engine, as well as several other concrete examples of how AI could improve its current business. As with Meta, the long-term implications of AI on Alphabet’s business model are still far from certain. But we do believe that it is a technology leader in this field and will participate in whatever direction the technology develops.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Amazon.com, Inc. (NASDAQ:AMZN) has scheduled its AWS re:Invent event for late November and Morgan Stanley expects the company to reveal AI products and features and give more clarity on the company’s roadmap for its AI capabilities. Amazon.com, Inc. (NASDAQ:AMZN) earlier this month held its annual product event, where it launched several new products, including new generative AI features for Alexa.
Wells Fargo recently updated its Signature Picks portfolio, adding to its Amazon.com, Inc. (NASDAQ:AMZN) stake, citing its positive view on the consumer discretionary segment.
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