Although Google, Maps, Youtube are of daily use they are monetized exclusively by advertising which is annoying and hated by many. It has been many years since Google has launched an innovative new product.
I don't think ChatGPT will gain daily traction after this hype. Anyway we could say that MSFT and AMZN have demostrated more power to innovate with different business models (not only adv) and products.
The GOOG stock has a PE (Price/earning) of 23, while Coca cola 26. So the stock market expect higher growth from CocaCola than Google. Quite surprising.
- GOOGLE PE (23): https://www.macrotrends.net/stocks/charts/GOOGL/alphabet/pe-...
- COCA COLA PE (26): https://www.macrotrends.net/stocks/charts/KO/cocacola/pe-rat...
Even Google winning the AI wars leaves them worse off as the operating profit potential of querying an AI vs their search index has to be far lower.
As to usage, once you start to integrate ChatGPT into your workflows it can meaningfully benefit vs traditional search. Ive been able to find information on specific programming language concepts, with generated examples, far faster than searching.
I can ask it about GameDev concepts and ask for bulleted lists or higher/lower level of detail in the answers. Information is presented in a much easier to consume manner
That being said, most stocks that are considered defensive are quite overvalued on a fundamental basis. I would consider a PE of 26 for Coke quite undesirable, though there’s much worse
In some ways, it might even be good. It's suffering from a kind of advertising resource curse nowadays, and being forced and able to diversify its economy would be best in the long term.
They had an enormous moat and edge in search, but not seeing it for this next wave of AI. Barrier to entry seems far lower