Shares of Alphabet (GOOGL), the tech giant behind Google Chrome, saw a dip in interest on Thursday afternoon. This decline followed the announcement from Prplexity AI, a startup supported by Nvidia (NVDA), that it would release a free version of its AI-powered browser, Comet.
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Aravind Srinivas, the CEO of Perplexity, mentioned to Business Insider that this initiative aims to counteract “slops,” the mediocre content proliferating online, created by both humans and automated systems. On Thursday, Alphabet’s shares dropped 0.54%, settling around $244 each by approximately 12:53 PM.
Comet’s Navigation in the Browser Landscape
Earlier this July, Perplexity offered a premium subscription for Comet at $200 a month, allowing early access. This Agent Browser functions as a personal assistant—capable of scheduling meetings, sending emails, and researching online, all while answering questions about web pages.
The premium version provided extra features like spreadsheet access and a web app, yet Aravind did note that the upcoming free version would have certain limitations.
Comet aims to challenge Google Chrome’s dominance in the market. Notably, Perplexity previously made a bid of $34.5 billion on Chrome, prior to the court’s decision regarding Alphabet’s antitrust situation.
The Intensifying AI Browser Competition
This shift comes as multiple startups and established companies, such as Brave with its LEO browser, are pushing the boundaries of traditional browsing into AI-driven territory. The Norwegian company Opera (OPRA) is also joining in with its Neon Browser.
Meanwhile, Alphabet is not sitting idle; it has recently integrated a Gemini AI chatbot into Chrome. Rival Microsoft (MSFT) is also enhancing its position with the launch of an experimental “Copilot Mode” aimed at making its AI assistant quicker and more intuitive.
Should You Buy, Hold, or Sell Alphabet Stock?
A look beyond Wall Street reveals strong buy recommendations for Alphabet’s stock, according to data from Tipranks. Analysts have issued 30 buy ratings and eight holds in the last three months. However, the average price target of $248.08 suggests a slight downside risk of around 2%.
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