Alphabet's Underwhelming Performance Creates a Buying Opportunity

Alphabet's stock has been underperforming this year, but its current prices make it an attractive buy for long-term investors. As of September 15th, Alphabet is up 10.5% in 2026 and trading at a relatively low price multiple.

The company's core business remains Google Search, which accounted for nearly 53% of Alphabet's $119.8 billion revenue in Q2. Despite initial concerns that AI chatbots would hurt Google Search, the company has successfully integrated traditional search with AI features, maintaining its dominant market share of 91% globally.

Google Cloud is another key growth driver for Alphabet, with revenue increasing 82% year-over-year to $24.8 billion in Q2. The cloud platform trails Amazon Web Services and Microsoft Azure but is growing the fastest among the big three hyperscalers.

Alphabet's current valuation of 16.7 times projected earnings over the next 12 months is its lowest in recent history, making it a good time to invest in the company.