Google: Don’t Fear AI Future


  • Google slumped last week following an underwhelming AI chat launch.
  • The company obtains all of their profits from the Google Services business focused on Google search causing the market to excessively worry about competitive threats.
  • The stock trades with an EV of 10x ’25 non-GAAP EPS targets even before expected efficiency gains.

Google website through a magnifying glass


Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) collapsed this week following a failed answer in a tweet launching a new conversational AI service. The market was overly dramatic on the outcome of the AI event hosted by Google, especially considering ChatGPT

Finviz Chart

Source: Finviz

Segment operating results

Source: Google Q4’22 earnings release

ChatGPT query

Source: ChatGPT

Bard chat

Source: Google

Desktop browser chart

Source: Statcounter

Search North American market share

Source: Statcounter


Source: ChatGPT

Data by YCharts

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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