Shares of Alphabet fall after Samsung is rumored to be switching over to Bing from Google Search

There has been a report that Google Inc shares (GOOGL.O) may be replaced by Bing, a search engine owned by Microsoft (MSFT.O) as the default search engine on Samsung Electronics devices, following a report that Alphabet Inc shares (GOOGL.O) were declining by up to 4% on Monday.

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Over the weekend, the New York Times published an article that underscored the growing challenges Google faces from Bing - a minor competitor with a growing presence since the integration of ChatGPT's AI technology, a minor player that has recently gained significant traction. The report was published over the weekend.

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It was reported that Google's response to the Samsung contract risked being classified as "panic reaction", since the contract is believed to be worth $3 billion to the company annually, according to an internal report.

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It is also estimated that another $20 billion is attached to a comparable Apple (AAPL.O) contract that is due for renewal this year, according to the report.

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Trade Algo published an article today in which Google said it would be working on new search features that would be powered by artificial intelligence. While the company did not comment on its association with Samsung, the South Korean consumer electronics giant did not reply to Trade Algo's request for comment.

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There has long been a perception that Google could be falling behind Microsoft in a dynamic race for artificial intelligence due to its dominance of the search market for decades and its share of over 80%.

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A promotional video from Alphabet's new chatbot, Bard, and a company event not received a positive response after incorrect information was shared in a promotional video and Alphabet's value fell $100 billion on Feb. 8.

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Alphabet's stock fell to $104.90 on Monday, erasing nearly $50 billion in its market capitalization and erasing nearly $35 billion off the company's valuation. Microsoft took a small gain with a gain of 1% that outperformed the rest of the market.

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As a result of developments in the past couple of months, investors believe that Google has become an overbearing monopolist in the search market, and this has served as a wake-up call to the company," Atlantic Equities analyst James Cordwell said.

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It has also been pointed out by Cordwell that there could be a potential cost issue associated with making Google Search more competitive with Bing powered by artificial intelligence.

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There was a 2.7% downward movement in Alphabet shares on Monday, which ended at $105.99.