Potential challenge to Google Search by OpenAI's SearchGPT poses a threat to Alphabet.
From Nasdaq: 2024-08-11 07:00:00
Alphabet (NASDAQ: GOOG) relies heavily on its search engine for revenue. Chatbots and AI, like OpenAI’s ChatGPT and new SearchGPT, pose a threat to Google Search. An antitrust ruling against Alphabet could impact its dominant position. Investors should watch how these developments affect Alphabet’s stock and business strategy.
OpenAI’s SearchGPT uses AI to provide multiple search results and sources, similar to its popular chatbot ChatGPT. The search engine is in testing mode, posing a potential competitive threat to Google Search. With over 200 million monthly users for ChatGPT, SearchGPT could challenge Google’s dominance in search engines.
Alphabet generated around $49 billion in revenue from its Google Search segment. Recent antitrust rulings and the rise of SearchGPT threaten this income source. Investors should monitor how well Alphabet adapts to AI and competitor search engines to assess the stock’s future viability.
Investors considering Alphabet stock should weigh the risks posed by SearchGPT and AI developments. The company’s heavy dependence on search-related revenue makes it vulnerable. Prudent investors may want to wait for more clarity on the impact of SearchGPT and antitrust rulings before investing.
The Motley Fool’s Stock Advisor team identified the 10 best stocks to buy, but Alphabet wasn’t one of them. With the potential for significant returns from other stocks, investors should carefully consider their investment choices. Stock Advisor offers valuable insights and stock picks to guide investors in making informed decisions.
Alphabet executive Suzanne Frey serves on The Motley Fool’s board of directors, and The Motley Fool has positions in and recommends Alphabet. It’s important for investors to consider the potential impact of new technologies, like AI and search engines, on Alphabet’s future growth and stock performance.
Read more at Nasdaq: Is This New OpenAI Product a Potential Google Killer?