Alphabet’s earnings call had one analyst asking if the company has a product problem.
SEANA SMITH: Let’s take a look at some of the top movers of the day. Shares of Alphabet, Google recovering some of its earlier losses. Taking a look at where it closed in the red, off nearly 3%. Decline in advertising and also YouTube revenue weighing on the stock today, but I want to zoom in on one part of Alphabet’s business.
Laura Martin, she’s an analyst over at Needham, titling her note after that earnings report that we got last night, quote, “Does Google have a product problem?” And she points to a number of things, to a number of places that she believes Google is playing catch-up, chasing TikTok with YouTube Shorts, chasing AWS with cloud service, lagging the iPhone with Pixel developments. And Dave, her case is a pretty strong one, in my view, just in terms of where Google is positioned, at least in those categories.
DAVE BRIGGS: No question about it. I can’t disagree with that assessment at all in terms of their innovation. I would only disagree about how far along YouTube television is. YouTube TV is going to capture all of these cord cutting– cord cutters, as we’ve seen that accelerate dramatically in recent years. And here’s an interesting study, just down from Ad Taxi. It says in their annual Super Bowl viewership survey, this will be the first year ever that streamers are greater than cable or broadcast.
They believe 30 plus percent of the Super Bowl audience will stream the game, just beating out the cable number 29, broadcast at 26, and that gives us a real glimpse at how fast streaming is accelerating, as is cord cutting. And I think YouTube TV is best positioned to take advantage of that and become essentially what was cable television, not to mention they got that deal Sunday NFL ticket that they’re paying $2 billion a year for. And this is going to be a huge revenue generator down the line. And that’s what I think counteracts some of what Laura Martin broke down.
JARED BLIKRE: Well, I’m really excited about AI, as everybody knows. And this is a bright side– Google is chasing it because ChatGPT kind of just threw down the gauntlet. Now Alphabet CEO Sundar Pichai highlighting during last night’s earnings call that Google has been, quote, “a leader in developing AI,” clearly trying to establish the role in the space where much of the conversation centers around Microsoft and ChatGPT. And investors are hoping on the A– or hopping on the AI bandwagon as well.
I’m looking at the YFi Interactive here. I set up a little heat map. Now this is a little bit sparse. I’m still in the process of constructing it here. But here’s a five-day view of some of the tickers here. Now BuzzFeed was really last week’s story. That stock is down 44% after being multiples 100%’s of last week. But here’s Big Bear AI. You can see up 114% over five days. Here’s a huge C3 AI play. That’s up 45%. So I think there’s going to be a lot of excitement in this space here.