Key Points

• OpenAI and other companies are taking market share from search king, Google
• The company is still a cash geyser from search, cloud, Android, YouTube and other products
• But the king is at risk of becoming disintermediated by better products
• Instead of buying Google’s slow death, look at ‘The Next Nvidia’ stocks instead

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[00:00:00] Doug McIntyre: You mentioned to me that about 8 percent of the people who use search now, mostly Google are now using chat, uh, GPT. Now that doesn’t necessarily mean they’re using it entirely for search, but it means that they’re making inroads into the search business and. You know, Google was, had this massive moat, massive moat.

[00:00:26] Doug McIntyre: They wiped out everybody else. If I were Google or I were an alphabet investor, I would be sweating right now.

[00:00:35] Lee Jackson: Yeah, because I mean, we saw, you know, big search engines from back in the day and Netscape things that had gone. Not, not, not just on the sidelines, gone. And, um, I think the cat is really out of the bag because people are realizing, wait a minute, if I can go to a place that isn’t grabbing every bit of data from me, when I look for something that may be good, and there’s people coming up, one of the companies that I saw recently, that’s getting a big, big Big push is perplexity AI.

[00:01:12] Lee Jackson: And this is an interesting name because they’ve already raised the, I’m going to go to my notes here. Uh, they’ve already raised a stunning 3 billion market cap and they’re in the process of doing AI, AI powered research and conversational search. Which means you can kind of talk to it. And most importantly, they have a 3 billion valuation, but guess who’s involved Bezos, NVIDIA, venture capital.

[00:01:44] Lee Jackson: So obviously those big names don’t have any problem with taking on Google.

[00:01:50] Doug McIntyre: They don’t. And I’ve used some of these products. And the thing that’s interesting is you can keep querying them with Google. You really don’t. Have the opportunity of keep going back and back and back to get more data,

[00:02:04] Lee Jackson: right? You can break it down maybe once, but not numerous times,

[00:02:07] Doug McIntyre: but you can, you can query and query and query and move things in a different direction.

[00:02:14] Doug McIntyre: Um, to me that makes search obsolete. Now it may not be obsolete tomorrow. Google may be in great shape for another two or three years. We’re heading in that direction. And I don’t see. Um, the, the Google moat is starting to disappear now.

[00:02:35] Lee Jackson: Yeah. And they don’t have the kind of ancillary business. Uh, they don’t have what Amazon has.

[00:02:41] Lee Jackson: They don’t have an AWS. You know, to counter, you know, their other business and their other parts are just nothing big enough to do that with. And you got a bull and, and, and Google search the money. There is gigantic. It’s gigantic. And even taking, even if the competition could take half of it away, it would be gigantic and I think they can.

[00:03:08] Lee Jackson: And a lot of people, it’s not just perplexity. It’s. You musk other people with very deep pockets that know that that there’s a lot of money to be made

[00:03:18] Doug McIntyre: now Google does have uh sort of this gemini Search results that sometimes are at the top of the page when you do it, right the ai they’re not gemini.

[00:03:27] Doug McIntyre: They’re not They’re ai Information, but they’re not the same sort of chattable, uh, thing that if you’ve basically you’re using what I’ve got on my phone, which is chat GBT four. It’s just amazing. I mean, I have to pay like nine 99, uh, but it’s, uh, it’s a stunning. Product. And I don’t think most people know how much of the world is going to be disintermediated by this.

[00:03:57] Lee Jackson: Yeah. And, and it’s interesting because I saw, you know, Qualcomm recently said that that’s in their new chip, that Google formats in their new chip. That’s going to go. In, you know, Google’s, uh, phone format. So, you know, well in pixel, but in, into, um, the, the, the competition, uh, to, uh, Apple, and you would think that, you know, maybe that gives it a bump and maybe that helps, but yeah, it’s, it’s, it’s nothing.

[00:04:31] Lee Jackson: Compared to how their structural, you know, PC based and laptop based search is, is going to be taken apart if people get really

[00:04:42] Doug McIntyre: into this. Well, the other thing is like, you’re talking about Android. It’s almost pre downloaded, but the thing that’s interesting about, uh, about AI is, is I can go online and I can download the one I want.

[00:04:56] Doug McIntyre: I can’t go download multiple search engines. It can say, I probably have four or five. I’ve got three on this phone. I could probably add another four or five and some are better at things than others. To me, that’s the threat to search. The threat to search is, is that I have now a plate. I don’t just have a hamburger.

[00:05:20] Lee Jackson: Yeah, that’s exactly right. And I think given the sheer dollars, like I mentioned before involved, people are going to go in there and they’re going to take a swing at taking some of this away.

[00:05:34] Doug McIntyre: Yeah. So, I mean, I don’t know, uh, people own alphabet right now. I wouldn’t be surprised if this does not start to hit.

[00:05:45] Doug McIntyre: Their earnings a year or two from now, it’s not going to be in the next quarter or two, but if I’m an alphabet investor or I’m interested in shorting it, um, I would keep a very close look on the numbers you’re talking about. They’re independent research numbers that say how many people are migrating from using search to using, um, you know, chat, GBT, and quite frankly, That’s trackable.

[00:06:13] Doug McIntyre: I mean, a lot of these places like counterpoint, the research firm, they’re very good at tracking those things.

[00:06:19] Lee Jackson: Yeah. And, and again, one of the things that Google has locked up well is that, you know, and I’m, I’m a customer per se, because, you know, I have Gmail and I have so much that I do on their format.

[00:06:36] Lee Jackson: That if somebody came out with a competing big format, not just search, but the whole nine yards, whether it’d be, you know, Musk or whomever, you know, it would be, I could switch, but it wouldn’t be

[00:06:50] Doug McIntyre: easy. You don’t think it would be easy. Well, the question is, depending on how advanced the technology is, you may be actually able to, you may be able to move it all over based on an AI function.

[00:07:05] Doug McIntyre: We, I mean, you know, it’s true. This is like,

[00:07:07] Lee Jackson: this

[00:07:09] Doug McIntyre: is like Flash Gordon. We have no idea what’s going to go on. It’s, it’s, we thought it was, we thought, I’m sorry, the young people do not know who Flash Gordon is. Well, anyway, he was, uh, he was a man who lived in the future. So, you know, we keep an eye on this because if you’re an Alphabet, uh, shareholder, there could be a short fuse on this.

[00:07:29] Lee Jackson: Yeah, there really could be. And.

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