Google stock

But the mistakes by the nascent technology are starting to pile up, and Google's up-and coming A.I.-powered chatbot has already cost the company $100 billion in ...

[first to report](https://www.reuters.com/technology/google-ai-chatbot-bard-offers-inaccurate-information-company-ad-2023-02-08/) on Bard’s mistake, and Google’s shares took a hit as a result. James Webb, however, is being used to [identify and catalog exoplanets](https://www.nasa.gov/feature/goddard/2023/nasa-s-webb-confirms-its-first-exoplanet#:~:text=Researchers%20confirmed%20an%20exoplanet%2C%20a,at%2099%25%20of%20Earth's%20diameter.). [Microsoft](https://fortune.com/company/microsoft/), Google, and Chinese search giant Baidu are all [moving fast](https://fortune.com/2023/02/07/microsofts-bing-google-bard-baidu-ernie-chatgpt-chatbot-battle-for-search-begins/) on their A.I. ChatGPT’s wide range of uses, status as [the fastest-growing consumer app](https://fortune.com/2023/02/02/chatgpt-fastest-growing-app-in-history-could-revolutionize-trading/) in history, and potential to [disrupt internet searches](https://fortune.com/2022/12/09/ai-chatbot-chatgpt-could-disrupt-google-search-engines-business/) has pushed rivals to throw out [the slow and cautious strategy](https://www.washingtonpost.com/technology/2023/01/27/chatgpt-google-meta/) that has dominated A.I. The error was discovered just before Google hosted an [event](https://www.cnbc.com/2023/02/08/google-bard-heres-more-of-what-the-chatgpt-competitor-can-do.html) in Paris to display more of Bard’s capabilities. [launched](https://fortune.com/2022/12/12/a-i-tools-like-chatgpt-are-exploding-on-the-internet-and-one-vc-believes-companies-could-be-using-it-in-every-department-someday/) in November that uses A.I. In it, users asked Bard for help with day-to-day activities, including recipe ideas and how to plan a baby shower, as well as more technical questions like how to explain to a 9-year-old what the James Webb Space Telescope has discovered. ChatGPT has succumbed to Google is arguably the furthest along among the established companies, [premiering its own A.I.-powered chatbot](https://fortune.com/2023/02/06/google-launches-ai-chatbot-rival-chatgpt/) for testers on Monday. But Bard underwhelmed audiences with inaccurate responses, including to the James Webb query. But the mistakes by the nascent technology are starting to pile up, and Google’s up-and-coming A.I.-powered chatbot has already cost the company $100 billion in market value. [wrote](https://www.blog.google/technology/ai/bard-google-ai-search-updates/) Monday, and it may be a good idea for Google to spend more time perfecting it before that happens.

Google's relatively weak performance in Q4 is not that big of a deal in my opinion. Click here to read my analysis and why GOOG stock is a buy.

The world is in disarray and it's time to build a portfolio that will weather all the systemic shocks that will come your way. I see two major risks to Google’s dominance in the digital advertising market which could undermine the company’s business model and lead to the destruction of value. While Google is likely to face greater regulatory scrutiny in the following years, we’re unlikely to see a major monetary impact on its financials anytime soon. The only question is how much upside its stock offers at the current levels and my updated DCF model below would be able to give an understanding of what to expect in the future. This updated model shows that Google’s enterprise value is $1.35 trillion while its fair value is $110.11 per share which represents an upside of around 7% from the current levels. As such, it’s likely that currency risks would no longer negatively affect Google at the same level as in Q4 which gives reasons to be more optimistic about the company’s performance in the following quarters. While it makes no sense to forecast the growth of the business by looking at its performance only in a perfect environment, such a foreign exchange impact gives an understanding of how Google could perform when the macroeconomic situation improves and the dollar begins to weaken to its pre-tightening levels. The capital expenditures are aligned with the management forecast which aims to achieve a similar CapEx in FY23 as it was in FY22. As a result, even if the advertising spending is cut, the search business would be the last to feel it which gives Google an edge against its peers that are dominant in other non-search segments. At the same time, all of Google’s divisions also experienced Q/Q growth during the last three months of 2022 which shows that the company’s portfolio of products and services continues to be in high demand primarily amongst advertisers and subscribers. A similar thing is true for EBIT as a percentage of revenue which is also close to the street assumptions in the model. The fact that the company managed to grow its revenues at all while its competitors experienced Y/Y declines indicates the strength of Google’s digital advertising portfolio and gives reasons for optimism for the company’s future.

Shares of Alphabet tumbled Wednesday after the company held an event to promote its new artificial intelligence chatbot.

In response to ChatGPT's popularity, Google declared an internal "code red" to accelerate development of Bard and other AI products, and the company's co-founders, Larry Page and Sergey Brin, [reportedly](https://www.nytimes.com/2023/01/20/technology/google-chatgpt-artificial-intelligence.html) got involved again, years after stepping down from day-to-day work at the company. Analysts at Evercore said there was "little incremental news" from Google's event, which may have contributed to the falling stock price. "We view these updates as the tip of the iceberg for MSFT's AI capabilities, with the largest opportunity in enterprise use cases." [Microsoft](/quotes/MSFT/) hosted its own AI event at its headquarters in Redmond, Washington. [AI software](https://www.cnbc.com/2022/12/13/chatgpt-is-a-new-ai-chatbot-that-can-answer-questions-and-write-essays.html) that generates text based on complex written prompts. Bing, which is a [distant second](https://gs.statcounter.com/search-engine-market-share) to During the event Wednesday, which was livestreamed from Paris, Google executives discussed some of Bard's capabilities. Bard is powered by the company's large language model LaMDA, or Language Model for Dialogue Applications. The web-based tool went viral after its debut in November, prompting analysts and Google employees to ask whether the [company was falling behind](https://www.cnbc.com/2022/12/13/google-execs-warn-of-reputational-risk-with-chatgbt-like-tool.html) in AI, an area which has been a core focus for Google for several years. [announced Bard](https://www.cnbc.com/2023/02/06/google-announces-bard-ai-in-response-to-chatgpt.html) on Monday, confirming [CNBC's prior reporting](https://www.cnbc.com/2023/01/31/google-testing-chatgpt-like-chatbot-apprentice-bard-with-employees.html), and the company said it will begin rolling out the technology in the coming weeks. [blog post](https://blog.google/technology/ai/bard-google-ai-search-updates/) Monday. [Alphabet](/quotes/GOOG/) closed down more than 7% on Wednesday after the company [held an event](https://www.cnbc.com/2023/02/08/google-bard-heres-more-of-what-the-chatgpt-competitor-can-do.html) that promoted its new artificial intelligence chatbot called Bard, one day after competitor Microsoft held its own event to show off new AI technologies in its competing search engine, Bing.

Shares of Alphabet slipped on Wednesday after reports that promotional material for the Google parent's new artificial intelligence chatbot contained ...

“This is just the first step on the AI front,” Ives told clients in a note after the event, reiterating an outperform rating for shares. Nevertheless, the analysts warn safety issues including result inaccuracy or bias, disinformation and the potential use of models for harm are key risks. Alphabet’s Bard announcement came one day before Microsoft held a press conference to tout an investment in OpenAI that has helped shares of the Silicon Valley staple surge nearly 20% over the past month. [‘AI First’ To Last: How Google Fell Behind In The AI Boom](https://www.forbes.com/sites/richardnieva/2023/02/08/google-openai-chatgpt-microsoft-bing-ai/) (Forbes) [Bill Gates On Advising OpenAI, Microsoft And Why AI Is ‘The Hottest Topic Of 2023’](https://www.forbes.com/sites/alexkonrad/2023/02/03/bill-gates-openai-microsoft-ai-hottest-topic-2023/) (Forbes) [Inside ChatGPT’s Breakout Moment And The Race To Put AI To Work](https://www.forbes.com/sites/alexkonrad/2023/02/02/inside-chatggpts-breakout-moment-and-the-race-for-the-future-of-ai/) (Forbes) Google shares fell nearly 7% to $99.40 by 11 a.m. [reported](https://www.reuters.com/technology/google-ai-chatbot-bard-offers-inaccurate-information-company-ad-2023-02-08/?taid=63e3b44cedaf0900014e602c&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter) Wednesday morning that a Twitter advertisement for the service, which generates answers for user queries and is debuting to a limited group of testers before a wider release, included inaccurate information.

Shares of Google parent Alphabet Inc. dropped more than 8% Wednesday following the official demonstration of Google's new AI chatbot, Bard, ...

as [the] AI arms race takes place among Big Tech.” held its own event to demonstrate new AI technologies in its competing search engine, Bing. Evercore ISI analyst Mark Mahaney bluntly deemed Google’s event, which focused on new AI-powered services across key consumer products such as search and maps, “Ai Ripple, Not Yet Ai Splash” in a note Wednesday.