Why Wall Street Still Bets on Google (GOOGL) Even as ChatGPT Rises
Despite AI challengers, investors believe Google's Search empire and Gemini AI keep it untouchable
Alphabet (GOOGL, NASDAQ) is holding steady around $179.53 despite mounting pressure from AI rivals like OpenAI's ChatGPT and Apple exploring AI search options. An 8% Q2 year-over-year growth forecast in search ad revenue reassures investors that Google's bread-and-butter business remains healthy.
Analysts at Truist, Morgan Stanley, and JPMorgan maintain “Buy” or “Overweight” ratings, with average price targets just below $200. Their confidence stems from Google's massive 90%+ share of the search market and growing monetization of AI features through “AI Overviews” powered by Gemini—now reaching over 1.5 billion users monthly.
Yes, ChatGPT, Perplexity, and others are encroaching on search, and antitrust clouds linger. Yet investors see Google’s deep-pocketed strategy—spreading AI tools across Search, YouTube, Cloud, Waymo—as a moat too wide to breach. With a forward P/E near 16.9×, GOOGL trades at lows not seen in years, yet institutional inflows continue to pour in.
Wall Street’s message is clear: Google's reign in search isn’t ending; it’s evolving. And until a true successor emerges, the stock remains a “war to lose” for competitors.