Alphabet's shares fall due to OpenAI testing new search engine, investors advised to buy

From The Motley Fool: 2024-07-30 06:45:00

Shares of Alphabet, parent company of Google, dropped after news of OpenAI testing a new AI-powered search engine. Despite being down 12% from recent highs, the stock is still up 21% this year. OpenAI’s SearchGPT aims to challenge Google’s dominance but faces hurdles, like technical errors and lack of monetization. Google’s advantages include brand recognition and financial strength to combat competition. Despite threats, Alphabet remains in a strong position to lead in search and offers a buying opportunity at a relatively low P/E ratio.



Read more at The Motley Fool: Alphabet Shares Continue to Fall as OpenAI Begins Testing AI-powered Search. Should Investors Buy the Dip or Stay Away?