Alphabet Inc Class CImpact on stocks 1
Alphabet Inc Class CAlphabet remains the cheapest-valued Magnificent Seven stock despite exceptional growth, as investors still underestimate its AI transformation. The company trades at roughly 17 times forward earnings, the lowest in the group, even after posting 24% revenue growth to nearly $120 billion, a 30% rise in operating income, and an 82% surge in Google Cloud revenue in its most recent quarter. Its Gemini models now handle 22 billion queries' worth of tokens per minute, the Gemini app has around 950 million monthly users, and nearly 90% of the Fortune 100 use its enterprise AI tools, turning AI into a tailwind rather than a threat. Hidden assets such as a roughly 14% stake in Anthropic worth well over $100 billion, Waymo, YouTube, and DeepMind add significant long-term value not fully reflected in the current valuation. Capital spending is set to reach $200 billion in 2026 and climb higher in 2027, pressuring near-term cash flow, but the combination of AI-driven growth, a value-stock valuation, and overlooked assets makes Alphabet the most underrated name in the Magnificent Seven.
Alphabet Inc Class C