Alphabet (GOOG) (GOOGL) is getting its groove back. After months of worries about Microsoft’s (MSFT) ChatGPT threat, investors welcome Google.com’s introduction of Bard.
GOOG stock rallied from an $85 - $90 low in Nov. 2022 to close at around $109. Markets are betting that ChatGPT will not entice people to use the Microsoft Edge browser over Chrome. In addition, they are hopeful that Bard on Google will prevent people from switching from Bing search to ChatGPT AI on Bing search.
CEO Sudar Pichai said that Google will integrate conversational AI features into the search engine. This should help Google answer queries faster. Anyone who tried ChatGPT will find the responses are somewhat slow. Google could outflank the competition by offering faster results.
Advertising Revenue Stalls
Alphabet already posted weaker revenue in the last quarter. Revenue from advertising will fall again this year. The company must sustain its advertising client base with Bard. Advertising is more than half of Alphabet’s total revenue.
To advance Bard, Alphabet’s AI needs to increase in usefulness over time. It needs to adapt to user queries. The more accurate the responses, the more likely Google users will continue running its apps.
Sellers might take a profit on GOOGL stock from here. Still, consider it a long-term investment
