Following news that Samsung Electronics would stop using Google as the default search engine on its devices, shares of Alphabet, Inc. gapped down to open Monday’s trading session.
Samsung is considering switching to Microsoft’s Bing search service in place of Google, which has gained popularity as a result of integrating OpenAI technology. The decision might cost Google approximately $3 billion in annual revenue if Samsung follows through on it.
Although bullish traders will like to see Google maintain its position above the eight-day exponential moving average (EMA), Alphabet’s negative reaction to the news was insufficient to reverse the stock’s upward trend, which it has been trading in since February 24.
When a stock continuously produces a string of higher highs and higher lows on the chart, an uptrend is present.
The bulls are in charge, as evidenced by higher highs, while consolidation periods are indicated by sporadic higher lows.
Moving averages can be used by traders to assist spot uptrends; rising shorter-term moving averages (like the eight-day or 21-day EMAs) signify a stock is in a sharper, shorter-term uptrend.
The competition for dominance in artificial intelligence (AI) is getting more intense as several industry titans jump in to close the gaps and update their goods and services.
In a similar vein, according to the New York Times, Google is also developing a brand-new AI-powered search engine under the project name Magi.
The construction of the search engine is already underway, and the tech giant is also making updates to its platforms that are already in place. In comparison to its current services, the new search engine will provide customers with a much more customised experience.
Not every brainstorming session or product idea results in a launch, but as we’ve previously stated, we’re excited about bringing new AI-powered capabilities to search and will share more information soon, according to a statement from a Google spokeswoman, Lara Levin.
The choice was made in response to a New York Times report claiming that smartphone juggernaut Samsung had hinted that Microsoft Bing would become the default application in its products.
The article claims that Google is concerned that switching the South Korean smartphone firm to Microsoft Bing might cost them $3 billion in revenue.
Since Samsung sent the tech giant a code red alert in December of previous year, noting the popularity of OpenAI’s ChatGPT chatbot, Google has been concerned.
A former vice president of sales and service at Google, Jim Lecinski, stated: “The company had been prodded into action and now had to persuade users that it was as powerful, competent, and modern as its rivals.”
After Microsoft and OpenAI revealed in February that they will be relaunching Bing, Google’s 25-year reign as the industry leader in search engines is clearly in jeopardy.
Around one million users were to receive Google’s initial feature rollout, but that number will more than double to 30 million by the end of the year. The search engine service will only be utilized by consumers in the US, according to the corporation.
