Despite a recent dip in Alphabet's stock price due to market fluctuations, the company's robust performance in digital advertising and AI integration suggests it remains strong. The Magnificent Seven tech stocks have significantly influenced the S&P 500, with Alphabet playing a leading role. Concerns over AI models impacting Google Search are not backed by revenue data—Google reported a revenue increase in search despite critics. The article encourages investors to reconsider their position on Alphabet amid its current market challenges.
The market has recently soured on this $2 trillion technology leader, but investors could be missing the forest for the trees.
Alphabet, in particular, has been an AI leader among the group, with multiple pieces of its business benefiting from growth opportunities in artificial intelligence (AI).
Google Search generated $42.6 billion in revenue in Q4 2022, but by Q4 2024, it had increased to $54 billion, illustrating substantial growth.
Some worry that large language models, like ChatGPT, could take search traffic away from Google Search, but so far this isn't reflected in advertising revenue.
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