Alphabet’s Bull Case vs. Bear Case Explained | GOOGL Stock

By Brad Faye Updated Dec 14, 10:35AM EST · Published Dec 14, 5:10AM EST

Quick Read

Alphabet (Nasdaq: GOOGL) has shifted from being a less favored investment to a top performer as its AI capabilities have grown. Investors have flocked to the stock recently, and it’s the top-performing Magnificent 7 stock in 2025.
Other mega-cap tech stocks, such as Meta Platforms and Amazon, were prioritized earlier in the building of portfolios such as Eric’s, but Google’s recent performance has positioned it among the top performers in the Mag 7 group.
Alphabet has several tailwinds entering 2026 including its ad business being more resiliant than expected despite the growth of AI, YouTube soaring, TPUs becoming a competitive advantage in the cloud, and Gemini gaining market share from OpenAI.

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Summary:

During a recent episode of The AI Investor Podcast, 24/7 Wall St. Technology Analyst Eric Bleeker and Austin Smith focused on the investment perspective surrounding Alphabet (NASDAQ: GOOG) | GOOG Price Prediction and its evolving role in the AI landscape.

Initially, Alphabet (the parent company of Google) was considered a less attractive investment due to its diversified business model, but Bleeker says that recent developments with the company have shifted his view toward greater bullishness.

“I’ve done an almost 180 on Google. I think I’ve done 179,” Bleeker laughs. “So, I think if we were, if we had started fresh and reallocated mid this year, I would’ve preferred Google among the mega caps.”

Bleeker explains that technology stocks like Meta Platforms (NASDAQ: META) and Amazon (NASDAQ: AMZN) were included in the $500,000 portfolio they publicly manage earlier due to available cash and strategic choices, but over time, Google’s stock performance has surged and helped move it from an underperformer among the “magnificent seven.”

If the video embed isn’t working, you can access the full video at the following URL: https://a673b.bigscoots-temp.com/investing/2025/12/14/googles-bull-case-vs-bear-case-explained-googl-stock

Discover 24/7 Wall St.’s ‘$500,000 AI Portfolio’

In the conversation above, we discussed a $500,000 AI Portfolio that’s managed as part of our AI Investor Podcast. In every single episode 24/7 Wall St. Analysts Eric Bleeker and Austin Smith break down the most important news in the AI space and show investors how they’re allocating $500,000 to their favorite AI stock ideas.

Subscribing to the podcast (and gettign all our stock ideas!) is absolutely free. Past recommendations are already up 418%, 287%, and 211% even though the portfolio is little more than a year old!

You can listen to our most recent episode in either Apple Podcasts or Spotify below. Make sure to subscribe to get notifications to receive new episodes as soon as they release!

Transcript:

Austin Smith: I’d love to just put you on the spot a little bit here. Alphabet (parent company of Google) is not in the portfolio and I’m curious, you’ve chosen smaller, fewer play exposures based on different sub-sectors like cooling or interconnects or chip manufacturing or chip design. Is the reason for keeping Google out of the portfolio that it’s too diversified, it’s not as good of a pure AI play, or is it now that this is Google becoming more of an AI company and you might consider it in the portfolio? I’m not asking you to make a call today. I’m just curious. Like this changes how you’re evaluating Google as an investment in the AI landscape because Google is obviously a lot more than just AI as well.

Eric Bleeker: Yeah. You know, when we first started the podcast, I remember we had some early episodes where I said, Google is one of my least favorite ideas, and we gradually turned more bullish. I said later, earlier in this year, I said, I’ve done an almost 180 on Google. I think I said, I’ve done 179. And as I had noted earlier for a little while, we weren’t buying stocks in the portfolio for reasons beyond our control. We had some things happening with some consulting work we were doing, and I was giving personal buys. I had done, if you go back to those episodes in April, and I had said I was purchasing Google personally. We record videos for our YouTube channel of, if you’re starting with AI, what stocks should you buy? And I said Google would be my top one. So I think Austin is just sometimes – Google is more a victim of circumstance where when we took our existing cash and we dropped it in Meta and Amazon to kind of have investments in lieu of leaving that in cash at the time, I wasn’t as bullish on Google, but I’ve also been kind of loathed to sell off Meta Platforms at extreme valuation discounts where it’s been trading recently.

So, I think if we were, if we had started fresh and reallocated mid this year, I would’ve preferred Google among the mega caps. But, you know, that’s the difficult thing with investing, right? It’s always what you’re currently invested in, are those stocks artificially in your beliefs lower than they should be, tax consequences, et cetera. So I think we’ve been extremely bullish on Google and it’s run up a lot. So I think amongst the magnificent seven performers is the top performer this year. So people who have owned it have done very well.

Austin: From last to first. I mean, appreciate how much of an outsider Google was on the mag seven companies until very recently. I mean, Google was hanging out at the bottom of your date returns and enthusiasm, you know, only six to seven months ago. And people were saying, you know, Sundar had missed the boat. And boy, you know, the empire has struck back with vigor.