Alphabet Stock: Bear vs. Bull

(NASDAQ: GOOGL) (NASDAQ: GOOG) has been in the news a lot lately, as is usually the case with the biggest tech companies. Its business has undoubtedly faced a painful slowdown in recent quarters as the complex macroeconomic picture has dried up demand in the digital advertising market. But because of its outstanding return of 127% over the past five years, Alphabet remains a popular ticker for investors. 

However, it's always a good idea to understand the entire situation. Let's take a closer look at both the bear and bull arguments for this FAANG stock. 

Artificial intelligence (AI) has easily been the most popular topic of discussion in the corporate world over the past several months, in particular, ChatGPT, which was recently integrated into Bing, the search engine owned by Microsoft. Beyond the threat that Google Search, Alphabet's bread-and-butter product, could lose a significant slice of its dominant market share to an AI-enhanced Bing, the new technology also calls the long-term economics of the search ad business into question. If users can simply ask questions and have AI tools provide them with single answers, there will be less opportunity to display digital ads as paid search results. This would deal a huge blow to Alphabet's crown jewel business. 

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Source Fool.com