Google stock loses 9.0% after it’s A.I event: buy the dip?

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on Feb 8, 2023
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  • Google hosted a live-streamed A.I. event to promote Bard on Wednesday.
  • Evercore ISI's Mark Mahaney remains bullish on the Google stock.
  • Shares of the tech behemoth are still up more than 10% year-to-date.

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Alphabet Inc (NASDAQ: GOOGL) just lost 9.0% after its live-streamed event that promoted “Bard” – its artificial intelligence chatbot it hopes will rival ChatGPT.

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Why are Google shares down?

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Google is expected to start rolling out the said chatbot in the coming weeks to defend its dominance in web search against Microsoft (find out more).

On Wednesday, the multinational offered more colour on what Bard can do. The live-streamed event showcased artificial intelligence-driven improvements to other products as well, including Google Maps and Google Lens.

But the sell-off in Google stock suggests investors wanted more out of its A.I. event. Earlier this week, rival Microsoft that recently announced a multi-billion-dollar investment in ChatGPT also hosted a similar event in Redmond, Washington.

Year-to-date, shares of Alphabet Inc are still up more than 10%.

Should you buy Google stock?

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The stock market news arrives only days after the tech behemoth reported weaker-than-expected results for its fourth financial quarter on currency headwinds and advertising slowdown.

None of it, though, is enough to turn Mark Mahaney (Evercore ISI) any less bullish on the Google stock. On CNBC’s “TechCheck”, Mark Mahaney said today:

Google will figure this out. I bet we’ll see at Google I/O in May a really impressive product. The huge advantage Google has is consumer behaviour takes a long time to change. I’d be shocked if there was a dramatic market share shift.

Mahaney recommends buying Google stock on the weakness and sees upside in it to $125. That suggests about a 25% increase in its share price from here.

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