Alphabet Inc (GOOGL) Stock’s New Backbone: Artificial Intelligence

As the AI space evolves, GOOGL is determined to remain on top

Last week, Martin Abadi, a computer scientist and member of the Google Brain Team at Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), along with David Andersen, an associate professor of computer science at Carnegie Mellon University, published a research paper that describes how artificial intelligence entities “can learn how to perform forms of encryption and decryption, and also how to apply these operations selectively in order to meet confidentiality goals.”

In simpler terms, GOOGL created three separate AI entities and instructed two of them to pass secret messages back and forth while the third attempted to intercept and decode them.

When the encryption was broken, subsequent messages were secured with even more advanced methods.

The truly amazing part of the experiment was that “the networks were not taught anything about encryption before the game began, meaning that the strategies they came up with were entirely original.” That also means Alphabet researchers may never know exactly what kind of encryption methods were being used, and they probably won’t be able to crack it, either.

Alphabet Inc’s (GOOGL) Alliances Won’t Help Android Pay Take Down PayPal (PYPL)

Android Pay teamed up with Visa and Mastercard, as the service lags competitors in the digital payments realm

Earlier this week, Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG) announced an agreement with Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) to provide Android Pay users with much more flexibility and convenience in online purchasing, as well as at countless retail locations around the country.

The benefits of this agreement are expected to come to fruition early next year and will allow Android Pay users to more conveniently shop using smartphones and tablets on hundreds of thousands of new sites.

According to Google’s global head of payment products, a strategic partnership has been created allowing users to link their Masterpass and Visa Checkout accounts with the Android Pay app. 

According to Google:

“Visa Checkout and Masterpass users who link their accounts with Android Pay can look forward to easy and secure payments in stores and online with a simple tap.”

Some investors have wondered, though, whether Google’s new relationship with Visa and Mastercard will be received well enough to generate meaningful revenue gains, or if Google is just following suit to remain relevant.

Salesforce.com, Inc. (CRM) Would Love to Buy Tableau … But Can It Afford to?

CRM would need to finance an acquisition of DATA

Wall Street is abuzz this week after it was discovered that Salesforce.com, Inc. (NYSE:CRM) was never actually considering acquiring Twitter Inc (NYSE:TWTR). According to a confidential presentation discovered buried within thousands of other email messages that were part of a hack carried out by DCleaks, CRM was evaluating more than a dozen publicly traded companies as possible takeover targets, but the micro-blogging site TWTR wasn’t among them.

What was on the list, however, was Tableau Software Inc (NYSE:DATA). Of all the companies CRM management has been considering as potential acquisitions, DATA seems to make the most sense.

Acquiring Tableau would do two things for Salesforce: incorporate DATA’s current technology and SaaS products and services to leverage the best components of each, while also eliminating a top competitor from the cloud computing arena.

The question, however, is less about why Salesforce would want to acquire Tableau or what synergies may exist, and more about whether current CRM and DATA shareholders would approve a merger.

Alphabet Inc’s (GOOGL) Google TV Could Threaten the Entire Cable Industry

Google TV should only exacerbate the culture of cord-cutting

According to Reuters, earlier this week an agreement was reached between Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG) and CBS Corporation (NYSE:CBS). Apparently, Google will be carrying CBS television content on its yet-to-be-released streaming service.

If the few details revealed by Reuters are indeed accurate, Google will almost instantly become a dominant force in the streaming television space, and could eventually threaten the entire cable industry.

Google’s TV service is expected to launch at some point early next year. YouTube is the undisputed king of online video sharing, and Google has taken steps over the past few years to improve its subscription platform (e.g., YouTube Red) and live streaming capabilities.

The presence of a bundle containing traditional television stations and content wouldn’t be much of a stretch for consumers to digest, and in fact could be extremely well-received.

Seagate Technology PLC (STX) Stock Is NOT a Contrarian Buy

Seagate stock has been on a tear recently, but the rally is out of juice

Seagate Technology PLC (NASDAQ:STX) is expected to announce the results for the first quarter of its fiscal 2017 today. Ahead of that quarterly report, Wall Street has been buzzing with news that several analyst firms have increased target prices for STX stock, and some have raised ratings as well.

The concern, however, is that Seagate stock will not benefit investors in the long run. Management has reported margins and revenues that are above earlier expectations, and claimed increased demand for computer hard drives.

Fitbit Inc (FIT) Charge 2 Demand Is Below Expectations

It's probably too early to tell how good the Charge 2 actually is...

Shares of Fitbit Inc (NYSE:FIT) have been floundering this week, down over 11%. Management had been hoping for a continuation of the surge that’s been pushing Fitbit stock higher over the past three months. Expectations were that the official release of the Charge 2 tracking band would aid the rally.

Unfortunately for Fitbit stock, the release of the Charge 2 did not cause massive stampedes at local electronics retailers, nor generate anything worth reporting on the nightly news.

Instead, since Thursday’s opening bell, shares of FIT have given back a rather sizable portion of the 37% gains that Fitbit stock has earned over the past three months. Some investors are concerned that shares will continue to decline if the Charge 2 doesn’t start selling.

Facebook Inc: Facebook at Work Is Great for FB, Bad for Work

Social media already costs employers billions in lost productivity

According to TechCrunch, Facebook Inc (NASDAQ:FB) is planning to reveal a modified collaborative network called Facebook at Work, aimed at enhancing communication between employees with a suite of messaging options and real-time video calling. When it debuts, the enterprise platform should add yet another layer to Facebook stock, which is up 23% year-to-date.

The Facebook at Work concept isn’t a new one, as rumors of such a product’s development have been tossed around for years.

However, apparently “a source close to Facebook” has just confirmed that the social media giant’s enterprise platform is finally ready and will be revealed within the next few weeks.

On the surface, using FB for effective communication and collaboration in a work setting may sound like the perfect idea. People are already familiar with the FB interface, so transitioning into the Work Feed shouldn’t be all that difficult.

But, it’s not the functionality I’m worried about, nor the ability of employees to learn to use Facebook features.