Google: Load up before too late ?
Is there a storm at the horizon, awaiting Google?
There is, according to the Business Today post dated 15 Feb 2024. (see below)
What happened on Thu, 15 Feb 2024?
$Alphabet(GOOG)$ sank after a report that ChatGPT owner OpenAI is developing a web search product that would compete with Google.
OpenAI’s service would be partly powered by $Microsoft(MSFT)$’s Bing search engine, the Information reported.
Shares in Google parent Alphabet (GOOGL) fell on Thursday as investors digested the latest artificial intelligence news. (see below)
At one point in time, it fell as much as -3.8%, far underperforming the Nasdaq 100, which dipped -0.3%.
With the loss, Google stock neared its 50-day moving average (ma).
Separately, Google announced the availability of Gemini 1.5, an improved AI training model.
About Gemini 1.5.
According to a Google blog, Gemini 1.5 has "dramatically" enhanced performance and Gemini 1.5 Pro, one version of the training model will be release for early testing.
According to Deepmind (Google’s AI research lab) CEO, Demis Hassabis:
"This is an exciting time for AI.
New advances in the field have the potential to make AI more helpful for billions of people over the coming years.
Since Gemini 1.0 introduction in December 2023, we've been testing, refining and enhancing its capabilities.
Alphabet has been dogged by concerns about risks posed by rival Microsoft’s artificial intelligence services to its Google search business, which generates the majority of the company’s revenue through the sale of digital advertising.
Based on Baird’s analyst Colin Sebastian assessment, the risk to Google from an OpenAI search product can be rated as “modest”.
It would not be easy for the startup to create a viable competitor.
Microsoft has invested billions of dollars in OpenAI and incorporated ChatGPT features into Bing last year.
So far, it failed to make inroads in market share.
In 2023, Microsoft gained little US market share in internet searches, despite the new OpenAI alliance.
Microsoft's Bing still holds less than 8% of the US market.
Google still commands over internet searches at nearly 88%.
Colin Sebastian further added that:
Search is extremely challenging to get right.
Google has fended off many competitors over the years with the quality of search results.
Alternative search engines probably need to be better than Google to really shift user behavior, that could be a challenge even for OpenAI.
My viewpoints: (mine & mine only)
Again, it is one of those days that is market reacting to news instead of thinking logically.
Just because OpenAI is going to attempt to create an alternate search engine, it does not guarantee success.
I am certain, many have tried and failed along the way.
It does not have the test of time (for its search engine’s accuracy) on its side.
If you have used ChatGPT and Gemini (formerly Bard), you would know that Gemini is “superior” on its replies versus ChatGPT.
In terms of technical analysis (TA), if Google stock price bounces off its 50-day moving average, it could signal a “Buy” opportunity for Google.
Are you game to pick up a blue-chip at a steal?
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There's not much that can rival google. They have been around collecting data Ion us for years.
A thought provoking article! I'm happy to repost it.
Great ariticle, would you like to share it?
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