Alphabet Inc. (GOOGL) Removed From Best Ideas List by Investment Bank

Investment bank Wedbush recently removed Alphabet Inc. (GOOGL) from its Best Ideas List.

According to the investment bank, worries about the increased competition that GOOG/GOOGL is facing from AI have made the shares more volatile.

More About Wedbush's Views on Alphabet Inc. (GOOGL)

Increased utilization of AI chatbots has made the outlook of Alphabet's search business more uncertain, Wedbush believes. And while Alphabet Inc. (GOOGL) can adapt to the challenge over the longer term, the Street may have its doubts about the firm's outlook for some time, the investment bank warned.

As a result, Wedbush thinks that the shares could fall below their fair value level of $220, Wedbush believes.

The Silver Lining

Wedbush believes that the long-term outlook of GOOGL stock remains positive.

Also importantly, although an Apple (AAPL) executive recently reported that the number of Google searches had dropped on Apple's Safari browser in April, Alphabet stated that the total number of Google searches continues to rise.

The Recent Price Action of GOOG Stock

 In the last month, the shares are little changed, while they have sunk 15% in the last three months.

While we acknowledge the potential of GOOG, 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 GOOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.