Part of The AI Chip Bubble · 12 stories · since Oct 14 · newest 4d ago
Alphabet's AI-search stumble triggers record stock rout, drags Amazon and IntelSocial media mocks Google over AI search's cost to its own business
4 Oct 29 10:00 AM · 10d ago · 7 articles · 2 posts · 65 comments · 5 sources · development 4 of 7
A large wave of comments on the news framed the rout as self-inflicted, arguing Google had undermined the profitability of its own search product by forcing AI Mode on users.
“"I killed and ate my goose that laid golden eggs and now I have no more golden eggs, please help."”
garysmith.bsky.socialAlphabet / Google Company at center of the selloffJeffrey Wlodarczak Pivotal Research CEO, analystAngelo Zino CFRA analystAmazon Cloud/AI competitor also hit by the selloffIntel Chipmaker caught in the broader tech selloff
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Reported in the same hours no headline names this development itself — these 3 claims were published in its stretch
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first by Mastodon, 10d ago
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first by Bloomberg Tech, 10d ago
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first by The Globe and Mail, 10d ago
What people said 24 voices · best of 65 · verbatim
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T
Watching the little thought bubble search its Reddit scrapes (?!?!?!?!?) for the answer to my question is insane.
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I'm not the poster you're replying to but I agree with the sentiment. In my view Sundar needs to go because he has never expressed a cohesive goal, vision or long term idea for Google other than "line go up". He just jumps to whatever shiny thing they're chasing du jour. Google's culture problem stems from lack of vision, leadership and project…
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The Gulf of America guys are cannibalizing themselves with an unprofitable product? ** pulls out tiny violin **
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It feels so surreal to me, like that Patrick Star meme. Analysts predict that Google will have 128b of revenues, and that the target for the stock price is $420 if that happens. The risk of that not happening is priced in, so the current price is $320. Actual results, 127b instead of 128b -> missed target by less than 1%, so the stock should go to…
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"I killed and ate my goose that laid golden eggs and now I have no more golden eggs, please help."
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Confidently incorrect on both counts. Search revenue was up 12%. Revenue from Google's AI infrastructure and enterprise AI solutions is up 103%. Cloud revenue more than doubled this quarter, and operating income tripled. Further, their profits from the Cloud division skyrocketed to $11.1 billion. Tldr: you have no clue what you're talking about.
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It costs them a shit ton of compute to give Gemini results for every google search only to have a majority of users click on the first Reddit thread below Gemini for actual info. Just throwing $$ out the window.
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The Bubble is not going to "pop," I'm so tired of this copium. We've all been hearing that about crypto since its inception, and guess what? Sure, it's all bullshit, but that doesn't matter. Our overlords have decided that this is how it's gonna be, and whether we like it or not, this is how it's gonna be
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What the fuck were they expecting to happen?
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I have ad blocker on my laptop but on my projected that plays youtube, I noticed literally in the past few weeks that youtube is now running way more ads now than ever before. I wonder if its to make up for the ad runs coming up short in the google search, as you just described.
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Good, get rid of them and make everyone happy
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For sure some do, especially with specific stocks. Sure im downplaying it and dragging down the bar. Im just exhausted from the bubble speak. But you bring up a good and specific point
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genuinely don't know what they thought was going to happen the whole point of gemini is to prevent clickthroughs
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Switched over from VTI and dropped $75,000 on GOOG shares from this massacre. Will report in a few months to a year how it went lmao
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If only people had been warning about this since Google replaced its Search with AI! (cc @doctorow.pluralistic.net and @edzitron.com)
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Nah if the sentiment is so bad it dropped 10% instantly it's probably gonna keep going down for a bit until sentiment changes.
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The inevitable outcome of believing machines are smarter than humans. Hopefully AI will destroy the companies who make it before it can destroy Humanity.
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Search Revenue didn't drop - it still grew 12% year on year - it was just a bit less than earlier this year.
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"April 2, 2007 'New Century, an American real estate investment trust specializing in subprime lending and securitization, filed for Chapter 11 bankruptcy protection.'"
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You guys haven't seen other memory stocks? 15% drop is average despite the positive earnings call.
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Too many people that complain about AI still use it. It makes no sense.
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It's nice that people have caught on to this silly nonsense. Downvotes are well deserved.
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"Oh no! Our AI In Everything model is conflicting with our Make Money model!"
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Shout out to @leyawn.bsky.social for reminding me that this exists.
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