Ted Thatcher, president of Bright Lake Management, explained his views for Alphabet Inc (NASDAQ:GOOG) in Schwab Network’s latest plan, and mentioned some of the stock’s key growth catalysts:

"Google deals are about 18 times the price to revenue ratio at least. If you compare to other giant caps, that's a huge discount. And I know if we're competitive with Gemini and Chat GPT usage and chat GPT usage is competitive or not. But we have to remember that you know, you know, your revenue is 10% revenue. More broadly, they have 270 million users, paid subscribers between the YouTube platform and their Google One platform, so when you look at that level of user control that Google has and then pair it with everything they just announced in I/O, with all that essentially everything AI Apps announced and absolutely compete with CHAT GPT user growth."

Alphabet posted strong quarterly results, but the market remains reluctant to search for stocks in its search business due to the fierce attacks from AI tools such as Chatgpt. However, Alphabet Inc. (NASDAQ:GOOG) Bulls believe these concerns are exaggerated.

Google has an advantage over its competitors because billions of users of its search engine are easier to switch to Gemini than to choose a brand new model. Google has over 1.5 billion users interacting with AI-driven search overview every month. Currently, when it comes to AI search, Openai, the alphabet’s biggest competitor, has less than 5% of users pay, and its business model is still under development. Google's first quarter results show that its cloud division's continued strength, revenue increased by 28% year-on-year, and operating income grew steadily. This supports Google's broader AI strategy and emphasizes the scale advantages of its cloud business.

Riverpark’s Large Growth Fund pointed out the following about Alphabet Inc. (NASDAQ:GOOG) in its 2025 investor letter in its Q1 2025 investor letter:

“Alphabet Inc. (NASDAQ: GOOG) Stocks fell in the first quarter despite their business being basically stable. Investors reacted negatively to the company's AI product launch relative to peers, and expressed concern about the potential loss of market share in core search and cloud segments. However, Alphabet continues to deliver strong cash flow from its major search and YouTube platforms, while actively investing in its next-generation AI and cloud infrastructure. We trade with valuation discounts with many of our peers, and we regard letters as core holdings, and the shocking upside is the acceleration of monetization of its new plan. ”