Alphabet Has 50% Upside and the Cheapest Multiple of the Big Six

Alphabet Inc. (GOOG) launched its fully autonomous ride service in Las Vegas, expanding Waymo's operations. The company's stock is trading at $342.52, which is 35.0% above its GF Value™ of $253.70, indicating overvaluation. Alphabet has a GF Score™ of 97/100, reflecting strong financial health and operational excellence. Institutional interest is mixed, with 24 gurus trimming and 16 adding positions.

Google (GOOG) reported Q2 revenue of $119.80 billion, up 24.2%, with Cloud revenue at $24.77 billion, up 82%. Capex doubled to $44.92 billion, and full-year capex is guided to $175-185 billion. CEO Sundar Pichai described AI as a secular shift, with demand outpacing investment. President Trump commented on AI data centers, criticizing Google's European investments.

Google reports 90% of Fortune 100 use Gemini Enterprise. Partnered with Accenture to place engineers in customer operations, targeting Microsoft's enterprise customers. Google Cloud revenue grew 82% YoY to $24.77B. Microsoft's Azure revenue hit $100B annually. Both companies are growing, but Google trades at a lower P/E.

Alphabet's CEO Sundar Pichai reported 82% year-over-year revenue growth for Google Cloud, with a backlog of $514 billion. Search remains the primary revenue driver, contributing 55% of total revenue. Cloud's operating margin reached 35%, but it still represents a smaller share of overall profits. Pichai highlighted long-term growth potential for both Search and Cloud.

Nvidia (NVDA) and Alphabet (GOOG, GOOGL) are leading the Dow's AI-driven growth. Nvidia reported 70% expected revenue growth for fiscal 2028, while Alphabet's Google Cloud saw 82% revenue growth in Q2. Nvidia's valuation is lower despite higher growth, and Alphabet's AI turnaround is notable. Both are key players in the AI investment cycle.

Google, a subsidiary of Alphabet (GOOG, GOOGL), has signed a 396-MW power purchase agreement with Fervo Energy (FRVO) for clean geothermal energy. The deal, the largest of its kind, will supply Google's data centers and validate Fervo's Enhanced Geothermal Systems technology. Fervo aims to deliver power by 2028, with a total potential capacity of 1 GW by 2030. The partnership highlights Fervo's role in meeting AI power demands and its growth prospects.