Alphabet is a leading stock among the "Magnificent Seven" due to its resilience against artificial intelligence disruptions. While AI chatbots pose a concern, their higher operational costs create a barrier for widespread replacement of traditional search. Alphabet's search model dominates thanks to its distribution, supported by Android and Chrome. Additionally, its established ad network, built over decades, provides a significant competitive edge. With only 20% of searches currently monetized through ads, future growth opportunities remain plentiful as new AI-powered features are introduced.
One investor concern is that AI chatbots will replace search. It's easy to see why some investors worry, but AI queries are significantly more expensive to run than traditional searches.
Alphabet's ad-supported search model still dominates, and not just because it's unlimited and free. Alphabet owns the distribution, including the Android and Chrome platforms.
Alphabet's ad network edge should also not be overlooked. The company has spent decades building one of the largest and most effective digital advertising platforms in the world.
When it comes to monetization, Alphabet is just getting started. Only about 20% of its searches today have ads, but that could change in the future.
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