Alphabet stock has been underperforming the market due to threats from antitrust suits and AI search competitors. Despite this, Alphabet is investing in AI and has a strong balance sheet. The company dominates online search, YouTube, Android, and Google Cloud, with a profitable business and solid revenue growth.

Antitrust lawsuits and AI search pose major threats to Alphabet. The DOJ wants Google to potentially sell off parts of its business, while AI search competitors are gaining traction. AI Overviews are Alphabet’s response, but the company is on the defensive in its core search market.

AI could disrupt Alphabet’s core search business, and the company must adapt to avoid falling behind. With a significant cash hoard, Alphabet can invest in AI or make acquisitions to stay competitive. Despite the risks, Alphabet’s low valuation and AI leadership position make it a strong long-term investment option.

Read more at Nasdaq: Alphabet Stock Looks Like a Big Tech Bargain