Alphabet's Market Cap Shrinks by Nearly $700 Billion Amid Doubts Over Its AI Edge

According to Odaily, Alphabet (Google's parent company) has seen its stock price remain under pressure recently. Since hitting an all-time high in May, its market capitalization has shrunk by approximately $692 billion, as concerns over its AI competitiveness continue to escalate.

Over the past year, investors once viewed Alphabet as one of the biggest winners of the AI wave. As of May 13, the company's stock had surged over 150% in the preceding 12 months, making it one of the best-performing stocks in the S&P 500 during that period, with gains significantly outpacing other members of the "Magnificent Seven" tech giants.

However, as the market reassesses Google's leadership in AI, Alphabet's upward momentum has begun to reverse. Investors now worry about the outflow of core AI talent at the company and the potential loss of its competitive edge in the generative AI race.

Analysts believe that as AI firms like OpenAI and Anthropic continue to drive innovation in models and products, Alphabet must prove that its AI ventures, such as Gemini, can translate into tangible commercial growth to regain market confidence. (Bloomberg)