Alphabet Inc. (Googl.US) stock price declines nearly 4% due to the concerns raised by the potential loss of revenue from Samsung. Googl.US price is currently trading at $105.
According to the news that came out this morning, Google's employees reportedly panicked after discovering that Samsung Electronics is considering replacing Google Search with Microsoft's Bing AI as the default search engine on its devices. This change would practically mean the end of a 12 year partnership with Google.
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Create account Try a demo Download mobile app Download mobile appThis switch could potentially lower an estimated $3 billion in annual revenue for Google. Despite Google’s deal with Samsung being significantly less valuable than the deal with Apple, the similar contract with Apple is up for renewal this year. This contract is tied to an estimated $20 billion. Apple will likely keep a close eye on Samsung’s negotiations with Google, which could potentially allow Apple to strengthen its bargaining power with both contractors.
Google is now racing to build an all-new search engine powered by AI and upgrading the existing one with new features as competitors like Bing are posing a serious threat to the tech giant’s search business. Despite negotiations still ongoing, Google developers are working on a brand new set of features named "Magi" for the upcoming search engine. Google sees a significant risk related to the rise of AI-powered competitors like recently demonstrated ChatGPT by OpenAI.
(Googl.US) Stock price action is currently trading in rising consolidation channel with 200d SMA close to crossover 50d SMA signaling trend reversal. Source: xStation 5
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