Alphabet shares have fallen more than 15 percent from their May peak.
Semafor reported on Aug. 28 that the slide has wiped out about $700 billion in Alphabet's market value. The move reflects worries that rising AI investment costs are weighing on the company and that it has not delivered a technically decisive breakthrough.
Alphabet has led gains in the Magnificent 7 over the past 16 months, but its position has recently looked less secure. Its top scientist has left the company, and key AI personnel have moved to other divisions. The launch of a new Gemini model has also been delayed.
Even so, Google still has an outstanding product lineup. It also has a deep talent bench and has invested in AI for a long time.
Amid a recent reorganisation, Google co-founder Sergey Brin (세르게이 브린) returned to day-to-day management. Semafor reported that these changes could become the turning point Alphabet needs.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr