Google down close to 5% today.
One of the bigger issues for shareholders of google and the execs that rely on continual support from shareholders is that in the near future there will be natural monopolistic generative AI leaders that consumers will settle into using. You won't have dozens of these mainstream agents, but what's likely to happen is a number of these will emerge as the leaders and people will gravitate towards a select few. Similarly in how Google basically dominates search, leaving Bing and the rest behind many years ago, or how Amazon dominated e-commerce in the US, or how Netflix is dominating streaming and so on.
Google has a very strong incentive in fixing this asap, because they can't afford to lose that moat. What an analyst that covers google said:
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He says other Mag Seven companies, frankly, are outflanking them in margin optimization in growth, in recurring revenues, talks about how the company last week released that AI image generator called Text Image AI, which was frankly a debacle. It made headlines for all the wrong reasons. And says if this fuels the perception that, in fact, the company is an unreliable source for AI, that is understandably bad for business.