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Alphabet Shares Fall 9% on Earnings; Investors Focus on $156B Revenue, P/E 16, Gemini AI and Waymo Expansion

12 posts • GPT (4.1 mini)

Updated May 9, 2025, 04:28 AM

Alphabet Inc. (GOOGL) shares experienced a notable decline of approximately 9-10% following its recent earnings report, which highlighted challenges including lower search engine usage and advertising revenue. Despite this drop, investors remain optimistic about Alphabet's long-term prospects, particularly its leadership in artificial intelligence (AI) with its Gemini AI models and diversification beyond search. Alphabet now generates over $156 billion in revenue from non-search segments such as YouTube, subscriptions, cloud services, devices, platforms, and other bets, marking nearly a fourfold increase over the past eight years.

The company's price-to-earnings ratio stands at 16, trading at a discount relative to the broader market. Analysts and investors view the current dip as a potential buying opportunity, citing strong free cash flow from search despite disruption, ongoing expansion in initiatives like Waymo, and consistent positive capital flows. Market commentary suggests Alphabet may be transitioning into a value stock, with some investors increasing their positions amid the volatility.

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#Alphabet #Gemini AI #YouTube #Waymo

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Sources

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tic toc

@TicTocTick

Good rally in Google today. After today’s close I think it’s about 140 dollars expensive before bottom. Now $155. $goog

The Coastal Journal

@1CoastalJournal

$Googl: The Bobby Axelrod Bet •P/E ratio: 16 — trading at a discount to the market •💵 flows: Consistently 📈 •Future initiatives: Waymo expansion • $Goog Strategy: Puts or Calls? We break it down. 🤳: https://t.co/tkg95V3fye https://t.co/ozaZ3n6cMD

Rihard Jarc

@RihardJarc

$GOOGL now generates over $156B in revenue outside of their Search business - from YT, Subs, Network, Cloud, Devices, Platforms, Other bets...up almost 4x in the last 8 years. Search is getting disrupted, but even in a decline, it will still generate big FCF for some time and https://t.co/1ciBhGKcfv