Google risks disrupting itself in the AI era, according to an analyst.
Alphabet Inc.’s stock was on track to fall Monday as a UBS analyst weighed in with a cautious take on the search giant, in part due to concerns about how the artificial-intelligence revolution will impact the company’s finances.
Much has been made of the Google parent company’s position in the AI race, and while some on Wall Street were worried earlier in the year that Microsoft Corp. MSFT posed a threat due to its investment in OpenAI and work to integrate that technology into Bing, UBS’s Lloyd Walmsley wasn’t worried about that rivalry “given a superior product at Google.”
He downgraded Alphabet’s stock GOOG GOOGL to neutral from buy Monday, while lifting his price target to $132 from $123. Alphabet shares were off about 1% in premarket trading Monday after finishing Friday’s session at $122.34.Google’s “new” search platform, dubbed Search Generative Experience , features far more text that’s powered by AI than the traditional Google search platform, Walmsley noted.
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