The Alphabet share price has been adversely affected by an error by the Google AI Bot Bard. Quite recently, Google announced its ChatGPT rival called Bard. However, the upcoming AI product of the company responded incorrectly to a simple query that raised concerns about its capabilities.
Since the launch of Chat GPT, the AI narrative has taken over the whole world. New AI startups and products are popping up everywhere. Even some conventional businesses are adopting AI to get their share of the ongoing hype. Google has also been under immense pressure since its rival Microsoft announced a $10 billion investment in ChatGPT’s parent Open AI.
Therefore, Google announced its 3 AI products earlier this week. The alphabet share price reacted to the news very positively, however, the gains were short-lived as the price is back below the month opening.
According to many analysts, Google was caught sleeping on AI integration to its search engine and Microsoft took the lead. Recently, Microsoft has integrated ChatGPT into its search engine known as Bing. This has sounded alarm bells among Google executives to maintain their top rank.
Alphabet Share Price Chart
Technical analysis of Alphabet share price depicts a brutal rejection from the 200-day moving average. The price also failed o reclaim the key psychological level of $100 which after breaking above it earlier this week. At the time of writing, GOOG price is trading at $94.33 and the stock is 5.1% down.
On Thursday S&P 500 and Nasdaq 100 showed minor gains, however, the alphabet stock price failed to join the rally. The recent rejection shows that the price can likely visit $85 support again. There is also a possibility of another bearish retest of $100 in the near term. However, I won’t recommend buying unless the price gains strength above this level.
After gaining 20% at the start of 2023, Alphabet share has lost most of the gains within the past couple of days. The price is still trading 37.7% below its February 2022 all-time high of $151.55. Another critical reason behind the downtrend in equities is the high-interest rate environment. The ongoing rally in S&P 500 is fueled by the dovish statements of the US Federal Reserve which may change soon.