Google Has Been an AI Winner. What to Do With Alphabet Stock Now
Stop searching for Big Tech's best artificial-intelligence stock. Alphabet has been the clear winner, and the gains could keep coming.A year ago, the future looked bleak for the company. In August 2024, U.S. District Judge Amit Mehta had declared Google a " monopolist," leaving investors to wonder if the internet search pioneer would be broken up. As that legal drama unfolded, OpenAI's ChatGPT went from one million users, days after its November 2022 launch, to 300 million weekly active users in December 2024, raising the question of whether Google's search business would be destroyed by AI. The fears left Alphabet stock trading for about 20 times estimated earnings for the next 12 months, the lowest price/earnings ratio for a Magnificent Seven stock, and below the S&P 500's 22 times multiple.