Slower Google Search growth adds to doubts about paying a premium for Alphabet. Search revenue rose 12% year over year to $63.4 billion in Q3 2026, down from 17% the prior quarter and 19% two quarters earlier; even that 19% figure did not pass the smell test. Google remains a great company, but its stock would be worth buying at a lower price. x.com  x.com 

Alphabet's vertical integration and moat make its current valuation attractive. Its forward P/E is 19.78, below the 22.51 median shown since 2019. Alphabet is also valued below Tesla and SpaceX combined, despite the chart showing Google's quarterly revenue far exceeding theirs; that comparison does not add up. x.com  x.com 

Google's search is becoming less profitable as AI agents disrupt its core business. Even perfect execution could make the transition painful, and Google is famously poor at new products. Its conduct over the past decade also raises stronger ethical objections than Meta's. Despite strong fundamentals, explosive cloud growth, no real risk and substantial growth ahead, Alphabet is unattractive relative to most other major AI companies. x.com 

Alphabet's earnings growth makes its valuation look attractive. It trades at 21x forward earnings and a 0.47 PEG while EPS grows 34% year over year; shares are down almost 9% year to date. Search still grows 12% and Cloud grows 103%, undercutting the concern that Search will sink the business. x.com  x.com 

Alphabet's business is bigger and more profitable across the board, while its stock is back at its March war-scare low. That makes it hard not to pour all future earnings into the stock. Quarterly revenue rose from $110B to $128B; Google Cloud growth accelerated from 63% to 103%, with $30.7B in quarterly revenue, an operating margin around 36% and profit more than tripling in a year. Search queries are growing at their fastest pace in five years. x.com 

Alphabet's core Search growth is slowing while AI spending surges, making the selloff look deserved despite fast Cloud growth. Search growth fell from 19% to 17% to 12% over three quarters; Search now represents just under half of revenue. The stock could fall to $250, though Amazon is the preferred buy. x.com  x.com  x.com  x.com  x.com 

Alphabet's EPS miss came from an $8.7 billion paper loss on equity investments, not a weakening operating business. Revenue rose 25% to $127.6 billion, Google Cloud revenue doubled to $30.7 billion, and cloud operating income tripled to $11.1 billion. The roughly 10% after-hours selloff is an incredible buying opportunity: the $287-$288 gap is the preferred area to buy, with an open below $287 that fills the gap triggering a long. x.com 

Alphabet's businesses beyond search are why it will lead the real AI boom. Google Cloud, DeepMind and Waymo broaden its reach, and its $900 million SpaceX investment is now worth $85 billion. Fear emerging as the shares fall is an opportunity; a decline toward the buy zone is welcome, even as Q3 capex has taken a large hit out of free cash flow. x.com  x.com  x.com  x.com 

Google's internal bloat and lack of unified product direction leave its innovations vulnerable to competitors that execute and monetize them better. Agentic product execution has been very poor, though the AI contest is far from over: search, cloud, built-in distribution, lower token costs and its balance sheet mean Google should not be written off. x.com 

Alphabet looks less attractive after a 195.5% five-year gain left it at 32x earnings, versus Microsoft at 26x after a 62% gain, and better options exist at better valuations. Both companies should still keep doing well long term. x.com