Alphabet stock price has lost 12.5% since Google revealed its AI projects. It was an incorrect response to a simple query by the Google AI bot that sent the Alphabet share price tumbling. Many analysts and Google insiders have criticized the rushed decision to jump on the AI bandwagon.
Since the launch of ChatGPT, AI hype has taken over the whole internet. AI stocks are leading the ongoing rally in global equities. The same is the case for crypto markets where AI coins like Fetch.AI have generated exponential returns this year.
However, for alphabet stock price, the company’s AI announcements have completely backfired. The January CPI data is also not very bullish for the markets as it has increased the prospects of more rate hikes. Analysts are expecting another 2 rate hikes in 2023. It would be very difficult for the alphabet shares to show a positive price action in the high-interest rates environment.
As per the recent Alphabet news, the chairman John Hennessy has said that Google was hesitant to unleash Bard. According to him, the company’s AI tech is still a couple of years away from being utilizable. John also thought that Google knew that the AI bot was not ready to be rolled out yet.
Following the failed launch, notable tech writer and venture capitalist Om Malik has suggested the current CEO to step down. According to him, he company must look for a CEO who is unsatisfied with the status quo.
Alphabet Stock Daily Chart
A the time of writing, Alphabet stock is trading at $94.95. Despite its last week’s steep fall, the price is still 9% in 2023. On a daily timeframe, the Alphabets share price broke out of the downward trendline but failed to hold above it. In the coming days, price could drop another 10% to retest the 2023 low of $86.
Since then, the price has fallen below the trendline once, which shows that the bears are in control. A closer look at the chart also reveals that NASDAQ: GOOG has faced rejection from the 200-day moving average. Therefore, the Alphabet stock price needs to break above this important indicator to unlock further upside.