Meta Platforms (META) and Alphabet (GOOG) shares traded in stark almost-perfect opposition Wednesday morning… why?
Seems odd for two of the famed MAG7 names – even more so when you consider Meta and Google are in quite an exclusive hyperscaler bunch along with Amazon (AMZN) and Microsoft (MSFT). Shouldn’t these stocks trade closely together if there are so few of them?
As the PreMarket Prep community dug into the price action on Wednesday morning’s episode, the answer seemed to land on the fact Meta released its latest AI model Tuesday afternoon, Muse. The company described Muse as “The World’s First Personal AI Agent Built for Everyone” in a post in their newsroom.
Some were left asking the question: did Meta beat Google to the agent punch with Muse? As Stock Trader Network’s favorite early bird, Michael Feehan, suggested: Google’s Gemini does not have what Meta just released with Muse. He also wondered how easily the “personal AI agent” aspect of Muse could replace a lot of the basic features of some Google services, like Calendars and Mail.
Elsewhere around the STN community, the team’s all-things-AI expert, BryanD (aka TraderOSX), suggested “Google is too large for its own good. Top engineers have been leaving a lot lately,” although Bryan noted turnover seems high across all of the AI/hyperscaler companies.
“I still think Google and Meta are really far behind the two American frontiers,” Anthropic’s Claude and OpenAI’s ChatGPT. A month or two ago, Bryan had warned on his AI Powerhour STN show Google’s Gemini could be falling behind the other AI models. (Tune in to AI Powerhour on Thursdays at 5 p.m. EDT to get each week’s AI-related news and to find out what the STN community has been very excitedly building with AI.)
Looking at the charts of Meta and Google, Bryan pointed out Meta’s chart looked bullish on the monthly and quarterly timeframes and the stock had recently reclaimed the 200-day moving average. Google, meanwhile, was red on the quarterly, monthly, weekly and daily perspectives, “basically full timeframe continuity red down.”
The next question, then: when Google releases it’s next model of Gemini, will it leapfrog Meta’s Muse? This could be the cycle AI users and traders alike see for the foreseeable future as these companies move at breakneck speed to vie for AI dominance.
