From NASDAQ:

Alphabet’s AI position is in question due to the rise of ChatGPT and competition from Bing, leading some investors to look elsewhere. However, Google DeepMind has released a new generative AI model, Gemini, capable of outperforming major benchmarks, which could restore confidence in Alphabet’s AI capabilities.

Despite competition in the AI space, Alphabet has other reasons for optimism. Revenue from advertising has seen recovery, and Google Cloud has grown its revenue by 22% year over year in Q3, making it the third-largest cloud infrastructure provider. Additionally, Alphabet owns businesses like Verily Life Sciences and Waymo, offering potential for new sources of revenue.

Alphabet’s resources and low valuation make it an attractive investment despite doubts about its AI position. The company held around $120 billion in liquidity at the end of Q3 and produced almost $23 billion in free cash flow in that period. With a P/E ratio of just 26 times earnings, Alphabet remains an excellent choice for investors.

The Motley Fool Stock Advisor analyst team didn’t include Alphabet among their 10 best stocks for investors to buy now. However, their service has tripled the return of the S&P 500 since 2002. Alphabet mentions Facebook and Google as well.



Read more: Is It Too Late to Buy Alphabet Stock?