Alphabet stock down 12% due to AI competition, but remains strong buy

From Nasdaq: 2025-05-18 09:00:00

Alphabet’s shares (NASDAQ: GOOG, GOOGL) have fallen by 12% this year due to market volatility and potential threats to its search engine dominance from AI-powered competitors. Despite challenges, Alphabet remains a solid buy with a $2 trillion market cap.

Investors fear AI-based search engines could replace Google, but past concerns about AI have not significantly impacted Alphabet. The company has launched its own AI initiatives and remains a leader in providing AI services through the cloud, maintaining its position in the market.

With a strong brand name and innovative capabilities, Alphabet is positioned to lead in search engine market despite potential disruptions from AI-based search. The company has multiple growth opportunities in cloud computing, streaming, and self-driving cars, making it a promising long-term investment despite recent performance.

Consider investing in Alphabet as the company navigates challenges and pursues growth opportunities in various sectors. The Motley Fool Stock Advisor team has identified 10 top stocks for investors, offering potential for significant returns in the coming years. Don’t miss out on the latest insights and investment opportunities.



Read more at Nasdaq: 1 Beaten-Down, Trillion-Dollar Artificial Intelligence (AI) Stock to Buy on the Dip