AI chatbot ChatGPT poses a threat to Google Search, impacting Alphabet's stock valuation.

From Nasdaq: 2024-09-12 08:30:00

Alphabet, listed on NASDAQ as GOOG and GOOGL, faces challenges as regulators investigate its dominance in search. With the rise of AI chatbots like ChatGPT, users may shift away from traditional search engines, impacting Alphabet’s business. Despite ChatGPT’s growing popularity, Google Search remains the top choice for many users.

While Google Search still leads, a recent survey shows an 8% increase in users relying on ChatGPT for search. Google’s revenue heavily relies on search ads, making competition from chatbots a potential threat. With the recent antitrust ruling against Google, the company faces uncertainties in its future growth prospects.

Concerns about Google’s future search dominance impact Alphabet’s stock valuation. Despite seeming like a bargain, risks associated with losing market share to chatbots and ongoing antitrust issues may hinder Alphabet’s long-term success. Investors should consider other growth stocks as a safer investment option.

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Read more at Nasdaq: Is ChatGPT Taking Market Share From Google Search? Alphabet Could Have a Problem It Hasn’t Had to Worry About for Years