Alphabet Vs. OpenAI: Why I'm Not Panicking About Chrome

Summary

  • OpenAI is launching its own AI-powered browser, posing the first real competition to Alphabet Inc.'s Chrome browser and its ad revenue, which makes up 74% of total revenue.
  • This looks disastrous for Google at face value, but it won't be a train wreck for the GOOGL stock. Chrome is more resilient-than-market expects, with Gemini integrated and a 68% market share.
  • Not to mention, Chrome remains the default browser for Samsung devices.
  • We're not expecting Chrome's market share to be risk-free, but we think the longer growth story for the stock is more than intact because of YouTube and Waymo.
  • GOOGL stock is undervalued at current levels, and we think investors shouldn't get caught up in the search panic and focus on the big picture.
  • Looking for a portfolio of ideas like this one? Members of Tech Contrarians get exclusive access to our subscriber-only portfolios. Learn More »

Wide shot luchador trying to take down opponent during lucha libre match

Thomas Barwick

We’ve all been sitting in the panic of AI chatbots pressuring Alphabet Inc.’s (GOOG, NASDAQ:GOOGL) long-time search engine dominance, and it’s finally happening.

This morning, Reuters broke the news that OpenAI is releasing an AI-powered web browser

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