We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chicago, IL – June 3, 2026 – Today, Zacks Investment Ideas feature highlights Alphabet (GOOGL - Free Report) .
Google: AI Skeptics Proven Wrong as Business Booms
Zacks Rank #3 (Hold) company Alphabet is the web search king and one of the most innovative tech companies in the world. Over the past few years, the company has evolved far beyond being simply a search engine provider to artificial intelligence, cloud computing, ad-based video, music streaming, autonomous vehicles, healthcare, and more.
In the online search arena, Google has a monopoly, accounting for 90% of search volume and market share. Over the years, the company has witnessed an increase in search queries, driven by ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
Google’s AI Business is Booming
As the AI revolution gained steam in 2022, one of the main concerns for Google investors was that AI would cannibalize its bread-and-butter search business. Not only has that not occurred, but actually, the opposite has. Monthly usage of Google's AI products surged sevenfold in a single year, reaching a staggering 3.2 quadrillion tokens processed. Additionally, AI has actually spurred search engine growth. Google’s AI Overviews are now embedded in roughly 55% of all web searches, reaching over 2 billion monthly users.
Meanwhile, Google Cloud has experienced robust 63% year-over-year growth driven by its enterprise AI solutions. Also, CEO Sundar Pichai noted that revenue specifically generated from products built on Google’s generative AI models grew nearly 800% year-over-year. All this has led to strong revenue expectations. Zacks Consensus Estimates suggest that GOOGL will grow revenue at a 20%+ rate for the foreseeable future.
Google Investments Thrive
While most investors think of Google as mainly an operator, its investments are arguably the strongest on Wall Street. Google owns 7% of SpaceX and 14% of Anthropic, two of the largest IPOs in history, which are expected to be listed this year. Its $900 million investment in SpaceX is now worth $126 billion, and its $13 billion investment in Anthropic is now worth $135 billion.
Google Chart Analysis
Google shares are retreating to an extremely high-probability confluence area, including a daily gap fill, breakout retest, and rising 50-day moving average.
Bottom Line
Alphabet has successfully silenced early skeptics who feared the artificial intelligence revolution would cannibalize its core business. Instead, AI has acted as a massive growth accelerant, supercharging both its legacy search monopoly and its hyper-growth cloud ecosystem.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Zacks Investment Ideas feature highlights: Alphabet
For Immediate Release
Chicago, IL – June 3, 2026 – Today, Zacks Investment Ideas feature highlights Alphabet (GOOGL - Free Report) .
Google: AI Skeptics Proven Wrong as Business Booms
Zacks Rank #3 (Hold) company Alphabet is the web search king and one of the most innovative tech companies in the world. Over the past few years, the company has evolved far beyond being simply a search engine provider to artificial intelligence, cloud computing, ad-based video, music streaming, autonomous vehicles, healthcare, and more.
In the online search arena, Google has a monopoly, accounting for 90% of search volume and market share. Over the years, the company has witnessed an increase in search queries, driven by ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
Google’s AI Business is Booming
As the AI revolution gained steam in 2022, one of the main concerns for Google investors was that AI would cannibalize its bread-and-butter search business. Not only has that not occurred, but actually, the opposite has. Monthly usage of Google's AI products surged sevenfold in a single year, reaching a staggering 3.2 quadrillion tokens processed. Additionally, AI has actually spurred search engine growth. Google’s AI Overviews are now embedded in roughly 55% of all web searches, reaching over 2 billion monthly users.
Meanwhile, Google Cloud has experienced robust 63% year-over-year growth driven by its enterprise AI solutions. Also, CEO Sundar Pichai noted that revenue specifically generated from products built on Google’s generative AI models grew nearly 800% year-over-year. All this has led to strong revenue expectations. Zacks Consensus Estimates suggest that GOOGL will grow revenue at a 20%+ rate for the foreseeable future.
Google Investments Thrive
While most investors think of Google as mainly an operator, its investments are arguably the strongest on Wall Street. Google owns 7% of SpaceX and 14% of Anthropic, two of the largest IPOs in history, which are expected to be listed this year. Its $900 million investment in SpaceX is now worth $126 billion, and its $13 billion investment in Anthropic is now worth $135 billion.
Google Chart Analysis
Google shares are retreating to an extremely high-probability confluence area, including a daily gap fill, breakout retest, and rising 50-day moving average.
Bottom Line
Alphabet has successfully silenced early skeptics who feared the artificial intelligence revolution would cannibalize its core business. Instead, AI has acted as a massive growth accelerant, supercharging both its legacy search monopoly and its hyper-growth cloud ecosystem.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.