Alphabets (NASDAQ:GOOGL) is it also fell 5.2% On Thursday, negative output in the stock of Communication Services amid the ongoing crisis in what appears to be a threat to Microsoft (NASDAQ:MSFT) in field of artificial intelligence.
If GOOGL fails to act during the day, it will go to a A decrease of 13%. for two days – which would have been the biggest two-day drop in stocks since the Global Financial Crisis in 2008, with $165B wiped off the market value.
Wednesday brought a 7.7% fall in GOOGL stock after the Paris exhibition on its AI efforts was seen as uninspiring.
And that only increased interest in Alphabet and Microsoft’s ( MSFT ) battle over who will lead the way in sharing ideas for the future of AI. Minutes after Google released its “Bard” counterpart to OpenAI’s popular ChatGPT, Microsoft said it would hold a surprise event showcasing the latest integration of ChapGPT with its Bing search engine. (Microsoft has increased its partnership with OpenAI to a total value of $10B.)
Despite Alphabet’s losses, Wall Street analysts remain bullish, with consensus Strong Buy ratings on GOOGL, and several are calm about the latest stock. Microsoft has had “better sales strategies and demos” recently, while Google appears to be “aggressive,” BofA said. But there are probably “advantages of marketing and distribution in Google search,” and Google probably has “superior AI search technology, or better data.”
The bank has a price of $125 now which means 33% upside.
Truist said that Google’s cautious strategy has been heavily weighted, but “we believe that its leadership in AI research is undeniable,” and that Google’s research leadership will emerge when all is said and done: “We suspect that if we integrate AI into both systems, we think that when we integrate AI into all these systems, we are sure. they should not see physical changes.”
Seeking Alpha authors call GOOGL a Buy, while Alpha Statistics Research considers the stock a Strong Buy.