| Google’s issues could just be the natural maturation of a tech company.
Meta rebounded from its metaverse mess with a cost-cutting “year of efficiency” that has delighted investors, while Big Tech elder statesman Microsoft’s valuation has rebounded thanks to its tie-up with OpenAI.
But it might be tougher for Google to stage a comeback.
The Gemini incident has led some critics to question if the company’s culture is overly influenced by left-leaning workers, BI’s Peter Kafka writes. And even as Google works to address the issues, it’s playing a game of whack-a-mole since AI models are a bit of a black box.
Corporations’ favorite fix-all is a rising stock price, but here, too, there are problems.
Disappointing revenue numbers for Google’s search business in the fourth quarter have dragged on shares. The Magnificent 7 member is lagging behind some of its high-flying peers, with its stock down roughly 1.5% year-to-date.
Still, this is Google. For all the headwinds it’s facing, the tech giant’s $1.7 trillion market cap dwarfs most countries’ GDP. But no matter how Google decides to push forward, the magic factory that once defined Silicon Valley culture now faces the prospect of a radical realignment. |
