Google AI Stumbles, But Search Dominates
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Google's AI chatbot "Gemini" recently provided inaccurate, embarrassing responses to users, causing controversy and raising concerns about Google's AI capabilities vs competitors
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Google appears to be taking an overly conservative approach with AI, trying to make it very "safe," but this is paradoxically leading to offensive, inaccurate content
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However, Google Search continues to gain share over Bing, and Google has many very valuable products like YouTube, Google Cloud, Android app store, etc.
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Compared to big tech peers, Google's valuation looks relatively inexpensive based on P/E, P/S, P/B ratios
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Google stock may not crash, but the company faces risks if it doesn't improve its AI offerings, justifying a less bullish/overweight view than before