Alphabet (GOOGL.US) shares are gaining as the company brings artificial intelligence to Google Workspace. Previously, the market saw the company as the 'loser' of the race against Microsoft in the AI segment. Today shares are up more than 4%:
- The Google Bard chatbot failed presentation cost Alphabet an outflow of $100 billion in market capitalization and its biggest sell-off since 2008. Today, however, the market has managed to recover much of that move, and the company remains one of the pioneers of AI among Silicon Valley technology companies.
- The company announced that the generative artificial intelligence will be included in the Workspace suite of applications (Google Meets, Google Sheets and Google Docs) but did not give an exact release date, indicating that it will work on it this year. The market received the information positively.
- Google with the help of AI wants to make users with the help of the company's apllications work more efficiently and faster. Users will have a decisive vote on whether the changes suggested in Workspace by AI will be implemented.
Google domination
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appNews about Chat GPT continues to generate a lot of buzz about Microsoft's (MSFT.US) investment in OpenAI ($10 billion). In November 2022, the company made its chatbot available to the public. Microsoft integrated the technology into the Bing search engine, and OpenAI unveiled a new version of the product yesterday, i.e. GPT-4, contributing to the rise in Microsoft's stock.
Despite the implementation of AI into the Bing search engine, Google's search share has even gently increased since November so speculation about losing market share is still just speculation. Google accounts for nearly 90% of Internet search traffic, and a skillful implementation of AI can increase its competitive edge. Even if technologically it will stand apart from its rivals (e.g. Bing) the so-called network effect and Metcalfe's law, which still drive Google's dominance, remain important.
Sentiment catalysts
Market speculation suggests that in the face of the AI war with Microsoft, the situation of current CEO ,Sundar Pichai is uncertain because Google founders Larry Page and Sergey Brin are taking an increasingly active role in the company. The market could very positively receive the return of the founders to the company's top management. A potential short-term threat to BigTech (especially Google) is the Reynaldo Gonzalez lawsuit against Google, which, if won could trigger a flurry of lawsuits and multi-billion dollar claims for damages.
Alphabet (GOOGL.US) shares, D1 interval. The price started the upward move and break 100 USD resistance level. Now the strongest resistance is at SMA200 level (red line) where we can see also 23,6 Fibonacci retracement of upside wave started in November 2022. Source:xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
