Google is still up 50 points over 1YTD. Pretty much all stocks are down except Nvidia which is almost up 2T cap and 1YTD 230 to almost 800.
I wouldn't say gemini is the cause for googles issues, but it really is a bad experience for their initial public AI release. People expected better from Google. (maybe?)
People's perspective of google is wrong. They think it's still the great old google but it's now ran by people making sure they'll get their annual bonuses.
I think very few people inside google really care about google, at least not like they used to.
This iteration of AI is already heavily associated with memes and headlines about its mistakes and hallucinations. I also find it hard to believe this one instance of AI failure has more than a negligible impact. But I'm sure the constant stream of headlines like this depress all the big players over the long run.
The problem here does not lie so much with the LLM technology developed by Google but in the fact that this technology has laid bare the activist nature of the people developing this technology. In a way it is a blessing in disguise that these models still lack the finesse to hide their inbuilt political agendas. Especially given that this is an election year in the US - home of the company which created this 'ED-209 of LLMs' [1] - while people in leading positions at the same company have made clear earlier [2] they intended to use their market dominance to influence the results of elections to fit their ideological preferences.
I wouldn't say gemini is the cause for googles issues, but it really is a bad experience for their initial public AI release. People expected better from Google. (maybe?)