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DailyBubble News

Google stock lags behind QQQ as the Gemini controversy adds to the woes By Investing.com

The top seven companies in the world, known as the Magnificent Seven, have continued their strong momentum in 2023, driving the overall equity market to new heights. However, not all tech giants have been performing as well, with Alphabet, Apple Inc, and Tesla Inc falling behind companies like NVIDIA, Microsoft, Meta, and Amazon.com.

Google, in particular, has seen a 4.5% decrease in its stock value in 2024, underperforming the Invesco QQQ Trust ETF, which has gained over 8.4% since the beginning of the year. This has led to questions about why Google stock is not performing as well as the ETF.

Analysts point to various factors contributing to Google’s underperformance, including a perceived lack of an AI strategy, issues with cost control, and increasing competitive pressures. One major factor impacting Google’s stock performance is the recent controversy surrounding its Gemini AI model.

Google faced criticism after implementing restrictions on its Gemini chatbot technology, which resulted in the generation of inaccurate and controversial images. This move led to a $90 billion decrease in Alphabet’s market value and raised concerns about racial bias in the AI model.

Despite acknowledging the issues with Gemini, Google co-founder Sergey Brin stated that the AI models are still a work in progress. Google stock is currently the third worst-performing company among the Magnificent Seven, behind Tesla and Apple, which have also seen declines in their stock value.

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