Waymo's Rise Sparks Buying Frenzy as Alphabet Trades at Bargain Price
Waymo, Alphabet's autonomous driving subsidiary, has surpassed 500,000 fully autonomous rides per week and secured a $16 billion investment round in February 2026. Despite this significant progress, Alphabet's stock trades at a relatively low price-to-earnings (P/E) ratio of 15.
The author of the article emphasizes that Waymo is not just a pilot project, but a fully operational robotaxi network with paid commercial miles. This sets it apart from rival Tesla, which still faces challenges in achieving large-scale autonomous driving capabilities.
Alphabet's core business continues to grow at an impressive rate, with revenue up 24.2% year-over-year in Q2 FY2026 and EPS of $9.11 against a $2.88 estimate. Google Cloud saw growth of 82% in the quarter, with a backlog nearing $460 billion.
The author notes that Alphabet's AI buildout is expensive, but believes it will pay off in the long run due to the company's strong fundamentals and growing adoption of its Gemini Enterprise platform by Fortune 100 companies.