Posted 2/29/2024, 1:18:24 AM
Alphabet Stock Dips on AI Gaffe But Seen as Buying Opportunity
- Alphabet's Gemini AI image generator failed to depict people accurately based on race, prompting backlash and removal of the tool
- The failure doesn't materially impact Alphabet's core advertising and cloud computing businesses, which continue to drive profits
- Alphabet has faced AI mishaps before (e.g. Bard chatbot) but the stock rebounded within weeks
- Analysts remain bullish on Alphabet stock with a consensus Strong Buy rating and 20.7% upside
- Alphabet has an advertising monopoly and low valuation, making this dip a buying opportunity for long-term investors