AI stakes are high as Alphabet loses over $150 Billion within a day!
Google Alphabet’s shares tumbled 7.7% on Wednesday after concerns surfaced about the competency of Bard, the ChatGPT rival it unveiled on Feb. 6.
The selloff continued on Thursday with a drop of as much as 5.1%, on track for the worst two-day decline since March 2020.
Tweet on Google stock fluctuation
@Google Alphabet’s shares tumbled again as concerns rose on the competency of Bard, the ChatGPT rival unveiled yesterday.
The selloff continued today erasing over 150$ Billion in market value #GoogleBard #AI pic.twitter.com/5wSI9W5EcF— The_Journalbiz (@the_journalbiz) February 9, 2023
Chart on Google Alphabet
The rout has erased about $170 billion in market value.
The fact that the selloff was far bigger than the 2.8% drop the day after Alphabet’s earnings missed estimates shows how important success in the AI arms race has become for investors.
“For a stock like Google to get knocked down this much, it just shows you that people aren’t even looking at the fundamentals,” said Matt Maley
The drama around Alphabet was in stark contrast to Microsoft, whose presentations about how it’s incorporating OpenAI’s popular ChatGPT technology into products like its Bing search engine helped send its stock up 4.2% on Tuesday.
Until this week, the speculation surrounding artificial intelligence in the US had been mostly limited to Nvidia Corp., which dominates the market for chips used for complex computing required for artificial intelligence programs, along with more obscure software makers with AI in their names. C3.ai Inc.
Chinese tech companies like Baidu Inc., Alibaba Group Holding Ltd. and NetEase Inc. have also announced plans to expand AI capabilities, fueling gains in their shares.
“There is obviously a worry that Alphabet will lose its edge in search, just because it is so dominant there and there’s a lot of money in search, but it still has the tools to compete,”
