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Alphabet shares NASDAQ: GooglGoogle maternal company is located in Crossroads And Excess pointField

After a fall by almost 20% with their 52-week maximum, the shares have since recovered by rising by about 20% from its 52-week minimum-shag, which traditionally signals the entrance to the new bull market.

However, since Googl is traded between the main technical levels and the middle point of its 52-week range, moods remain separated, as well as the price action and positioning of shares.

So it becomes a real question: who will be right Bears or bulls?

As investors weigh the future of the technical giant, look at its bulls and bear.

Bull body for alphabet

Despite the increase in the pressure on the part of the search for AI and advertising applicants, Alphabet is unlikely to recognize its dominance. The company aggressively positions itself for the next stage of the technical revolution. At his conference, the Google 2025 input/output developers showed a set of AI innovations, especially thanks to his Gemini models, demonstrating his ambitions to remain a leader in the next generation calculations. JPMorgan confirmed his Excess weight rating on Googl after the event, with The price of 195 dollarsReferring to its achievements and the growing potential of monetization.

Search in Google remains King of the onlineStill commands about 88% of the US market share. While tools with AI became alternatives, Google scale, infrastructure and integration between devices provide it deeply built into the daily use of the Internet.

Its integration of AI in the main products already brings fruits. “Review of AI” Currently, it reaches more than 1.5 billion users in 140 countries and is monetized in a comparable way with traditional search results, according to management.

This suggests that Google does not just introduce AI, it effectively monetizes it on a scale.

In addition to the search, the diversified Alphabet income flows are gaining momentum. YouTube announced advertising income in the amount of $ 10.47 billion. The United States over the last quarter, due to the growth of subscriptions and a reliable involvement of users. Google Cloud, once lagging, gained momentum, and enterprises are increasingly making their decisions with AI.

And Waymo, the autonomous driver’s hand Alphabet, expands to more than 10 cities of the United States, offering a promising option in the long run.

It is important to note that the alphabet The assessment looks attractiveThe rally field is historically traded on average P/E about 28The field today is trading in only 16.3x forward Earnings and 18.5-fold earnings, estimates, more typical for shares of slow value than technological giants with scalable platforms. For long -term investors, this can signal the possibility of buying a dominant business with a significant discount.

Bear for the alphabet

Nevertheless, not all signs indicate a bull future. The core in the Bear Case is simple: the main Alphabet engine, search and advertising, is at risk, and growth may not justify even today’s cheap assessment.

One of The most significant risks It is a potential erosion of the home search for Google, especially in the face of a new competitor. Recent messages show that Apple is considering switching the default search system to Safari and Siri to an alternative to AI, such as it confuses or Catgpt Openai.

During the Apple Antimonopoly Treatment, the Apple Feeddy Vortex signal noted a significant decrease in the search volume in safari, since users are increasingly relying on artificial intelligence -based tools. If Apple ultimately plays or moves his profitable search partnership with Google, this can significantly explode income from Alphabet advertising.

Add to this growing competition Amazon’s Ad Ecosystems and the growth of AI-brown platforms that do not rely on traditional search structures. Google competes not only for advertising dollars, but also in order to remain relevant in how people get access to information.

Normative risks Another significant oncoming wind. The ongoing trials on antimonopoly legislation in the USA and the EU are aimed at the dominance of Google in the field of advertising technologies and search. Meanwhile, the laws on confidentiality continue to limit the amount of data collection, reducing the accuracy and profitability of target advertising.

Finally, the bears claim that, despite the numerous initiatives of the alphabet, his innovation is not yet Accelerates the growth of earnings significantly. If his initiatives on AI will not be able to compensate for a decrease in dominance in search, investors in Googl can potentially be in Classical value trap.

Before considering the alphabet, you will want to hear it.

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