10 Stock News You Should Pay Attention To

2. Alphabet Inc (NASDAQ:GOOG)

Number of Hedge Fund Investors: 178

Jim Lebenthal, a partner at Cerity Partners and a panel member of CNBC Halftime report, said in a latest program that following the latest court ruling that Alphabet Inc (NASDAQ:GOOG) will not have to sell Chrome, the stock is undervalued and he is “very delighted.”

“I say it’s still undervalued and a meaningful overhang has been taken out of the name. You never know what’s going to happen with these things. The judge can go any way they want to. But the idea that we would be talking in May, as you referred to, Scott, about competition eating Google’s lunch and at the same time that this judge would rule that there’s a monopolistic practice here at Google—well, that was the ruling, but that the punishment would be draconian to reflect that monopoly. That was completely in Congress. You can’t hold those two thoughts together. So although it was not a fatal plea, I’m very delighted. This is the news I expected.”

Alphabet Inc. (NASDAQ:GOOG) bulls believe concerns around AI-related threats to Google search are overstated. Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. As of April, Google had over 1.5 billion monthly users interacting with its AI-powered Search overviews.

Google’s competitor OpenAI failed to impress the market with its GPT-5 model, while Gemini is gaining traction with new features. Analysts believe the company is strongly positioned to start placing ads in AI search results, which means its core ads business will not be impacted despite the decline in traditional search.

Pershing Square Holdings stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, is successfully executing on its vast AI potential. The company’s key advantages – stemming from industry-leading models, a full-stack approach to technical infrastructure (including proprietary chips), access to high-quality data, rapidly improving product launch velocity and a robust distribution ecosystem of seven different apps with over two billion users each – are beginning to meaningfully widen Google’s moat and competitive differentiation in AI.

In its core Search product, the company’s AI leadership is most evident in its broad roll-out of AI-powered summary responses, called “AI Overviews”. AI Overviews are now being served to more than two billion users across 200 countries, making it the most widely used consumer AI product. AI Overviews are resulting in users asking more detailed questions, clicking through at higher rates and searching with greater frequency. On the back of AI Overviews’ success, the company has also introduced “AI Mode”, which more closely resembles a chat-like user experience, directly onto the Search page…” (Click here to read the full text)