Shares in parent company Alphabet plunged more than 7% on Wednesday, wiping $100 billion off its market value.
This comes after an event held to promote its new artificial intelligence chatbot called Bard failed to impress investors.
What actually happened?
During Wednesday's event, which was streamed live from Paris, Google executives explained some of Bard's capabilities that showed how it could be used to answer queries.
Even so, the company took a misstep after an ad designed to showcase its new AI bot showed it was answering questions incorrectly.
The bot was asked what to tell a 9-year-old about discoveries from the James Webb Space Telescope.
As such, it offers feedback that the telescope is the first to photograph a planet outside the Earth's solar system.
But the truth is, the important event was recorded by the European Very Large Telescope (VLT) in 2004.
The mistake sparked a discussion by astronomers on Twitter who questioned why Google did not fact-check the example before sharing it.
Moreover, investors are also not attracted by the presentation given by the company because they expect something more than that.
Google has been under pressure since late last year, when Microsoft-backed OpenAI launched its new ChatGPT software.
Microsoft previously announced that its new version of Bing will use ChatGPT technology in a more advanced form.
