zlacker

If search gets usurped, or even a marginal but meaningful reduction in usage due to competition from AIs, then its not surprising at all that Google’s near term prospects could be worse than Coke.

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

>>adam_a+(OP)
If Google ends up winning in the AI war, search and ads will be significantly cannibalized, but it will have tremendous opportunities outside of search, many of them in areas that don't even exist yet.

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.

>>scarmi+z3
I'm not sure, it seems many companies have comparable technology at this point, and Google is not known for being great at packaging tech into products.

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