We recently published 10 AI analyst calls you should pay attention to. Alphabet Inc (NASDAQ:GOOG) is one of the stocks that analysts were talking about recently.
Steven Grasso, CEO of Grasso Global Inc., said after Alphabet Inc’s (NASDAQ:GOOG) latest quarterly results that he still believes Google Search faces “existential” threats from AI. The analyst said he would not buy shares of Alphabet Inc (NASDAQ:GOOG) and explained his bearish thesis on CNBC:
“I still think there’s an existential threat and even though search has increased and Gemini has helped conduct the search, you don’t get the clicks when you do an AI search, you don’t get the clicks that you would normally get when you do a Google search. So when you do a stump search for me, I only see the summaries. If you see the summary with Google, do you click on anything? And how does it affect that to income in the future? That’s something that worries me. I wouldn’t be a Google buyer.”
Alphabet Inc. (NASDAQ:GOOG) bulls believe concerns about AI-related threats to Google search are overblown. Google has an advantage over its competitors because it is easier for its search engine’s billions of users to switch to Gemini rather than opting for an entirely new model. In April, Google had more than 1.5 billion monthly users interacting with its AI-powered search summaries. Google competitor OpenAI failed to impress the market with its GPT-5 model, while Gemini is gaining ground with new features. Analysts believe the company is strongly positioned to begin placing ads in AI search results, meaning its core advertising business will not be affected despite the decline in traditional search.
Pershing Square Holdings stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2025 Investor Letter:
“Alphabet Inc. (NASDAQ:GOOG), Google’s parent company, is successfully harnessing its enormous AI potential. The company’s key advantages – derived from industry-leading models, a comprehensive approach to technical infrastructure (including proprietary chips), access to high-quality data, rapidly improving product launch speed, and a robust delivery ecosystem of seven different applications with more than two billion users each – are beginning to significantly widen Google’s moat and competitive differentiation in AI.