We recently published 10 Stocks Moving on Buzzing News as Analyst Issues Strong Warning About AI Valuations. Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks moving on buzzing news.
Theotrade’s Don Kaufman said earlier in October on Schwab Network that he’s bearish on Alphabet amid AI threats. He sees GOOG returns “diminishing” with time and mentioned an options trade to play it.
“I mean, where are they making their money? Is it AI? Right now, that AI hype trade is part of Alphabet Inc Class A (NASDAQ:GOOGL) 30% return on a year-to-date basis. The reality is, where are they actually making money? A lot of it has to do with Apple, a lot of it has to do with search, and those are going to bring diminishing returns in the near future. I’m bearish on Alphabet Inc Class A (NASDAQ:GOOGL), but this one I’m giving myself considerable time. I’m going out in the options marketplace all the way to January. This one for me is less about a technical trade—Rick is going to look at the technicals, which I would agree are actually strong. The fundamental basis behind the trade, though, is hype. It’s AI, and I don’t think that’s going to resonate with Google investors. Alphabet Inc Class A (NASDAQ:GOOGL) January 16th expiration—as I said, I’m giving it the gift of time, three months out. I’m going to buy the 230 puts and sell the 220 puts. It’s a $10-wide put spread done for a $2.90 debit. This is a trade that’s out of the money, it’s defined risk, and it’s looking for a fairly substantial break lower inside Alphabet over the next three months.”
Pixabay/Public Domain
Bristlemoon Global Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its third quarter 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) is another stock that we felt had been undeservedly beaten down by a bearish narrative that largely ignored the fundamentals of the business. We began accumulating GOOGL in June and continued adding to our position in Q3 as we waited for the market narrative to flip on its head. Alphabet needs no introduction, so we will jump straight into why we thought the AI disruption and terminal value fears were overblown.
