3 Reasons to Buy Alphabet Stock, Despite the Risks Posed by AI
The rise of artificial intelligence (AI) applications and large language model chatbots this year led some investors to doubt the investment thesis for one of the market's most stable companies. These new technologies have some investors questioning the future of traditional internet searches (and the digital advertising that comes with their results) that made Google-parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) one of the world's largest tech companies.
Should investors give up on the tech giant? It would seem prudent for them to seriously consider the state of the advertising industry as it relates to AI. Still, Alphabet remains in solid shape, and investors should pay closer attention to three of its key attributes before writing off this communication stock.
Alphabet stock has struggled amid the latest advancements in AI technology. On the surface, the arguments against the Google parent make sense. If an AI chatbot can provide users with the information they desire in plain language, why would they keep using Google search -- and viewing the advertising on that platform? Since ads made up 78% of Alphabet's revenue in the first quarter of 2023, the decline of this business is a potential concern.
Source Fool.com
Alphabet Inc. A Stock
The stock is an absolute favorite of our community with 93 Buy predictions and no Sell predictions.
As a result the target price of 178 € shows a slightly positive potential of 12.96% compared to the current price of 157.58 € for Alphabet Inc. A.
