Alphabet's recent struggles in the generative AI space have put pressure on its stock, as the company aims to expand its Google Gemini chatbot user base to 500 million by the end of 2025. Despite launching an iOS app for Gemini, Alphabet is trailing behind competitors like ChatGPT in terms of paid subscribers, with Gemini ranking only 54th among free iPhone apps compared to ChatGPT's 4th position. This competitive pressure is reflected in Alphabet's stock performance, as investors weigh the company's ability to meet its ambitious targets. CEO Sundar Pichai's confidence in Gemini's capabilities has not yet translated into the desired market traction, suggesting that Alphabet may need to adopt more aggressive strategies to close the gap with its rivals.
The Direxion Daily GOOGL Bull 1.5X Shares (GGLL) ETF experienced a decline, dropping 3.09% to $46.97 as of 16:40 on Thursday, January 16.