Well-Known Investor Defends Alphabet Inc. (GOOGL) Stock

Alphabet Inc. (GOOGL)'s strong "intellectual property and talent" will enable the tech giant to adapt effectively to the threat that it's facing from AI chatbots, Jim Lebenthal, a partner at Cerity Partners and a frequent guest on CNBC, said on the channel on Friday.

However, the veteran investor also suggested that the near-to-medium term outlook of GOOG stock is uncertain at this point.

Why Lebenthal Believes That Alphabet Inc. (GOOGL) Will Overcome the Challenge From Chatbots

Alphabet has "an incredible amount of intellectual property and talent," Lebenthal asserted.

Consequently, it will be able to "modify its business" in order to withstand the threat from the chatbots, the investor stated.

 Analogy to META's Past Struggles

In the past, Meta Platforms (META) faced threats from the advent of the mobile internet and from changes made by Apple (AAPL) to its iOS operating system, Lebenthal said.

But META Platforms (META), using its powerful intellectual property and adept employees, was able to overcome these challenges, Lebenthal said.

He predicted that Alphabet Inc. (GOOGL) would be able to similarly prevail in its struggle against the AI chatbots.

Unknown Short-to-Medium-Term Outlook

In "the next several weeks," GOOGL stock "will either dribble down..or it will start to recover," Lebenthal said.

While we acknowledge the potential of GOOGL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.