Alex Sirois
5 min read
Quick Read
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GOOGL trades at just a 15 P/E despite 24% revenue growth, a $460 billion Cloud backlog, and 12 straight quarters of double-digit expansion.
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MSFT and META are strong businesses, but neither matches GOOGL’s rare combination of 82% Cloud growth and a well-below-market valuation multiple.
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With 2026 CapEx guided to $180 billion and free cash flow briefly negative, Alphabet still raised its dividend 5% and holds 175x interest coverage.
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I keep hitting the buy button on Alphabet (NASDAQ:GOOGL) and I have no intention of stopping. Every payday, every dip, every quarter that closes with the machine humming louder than the one before. What pulls me back is a business that already prints cash at a scale most companies only fantasize about, trading at a multiple that feels borrowed from a different decade.
My Buy Button Keeps Firing for a Reason
Alphabet is compounding across four monetization engines at once: Search, YouTube, Cloud, and an autonomous driving unit crossing 500,000 fully autonomous rides per week. Q2 revenue landed at $119.8 billion, up 24.23% year over year, the 12th straight quarter of double-digit revenue growth. That is a compounding machine.
Three Reasons the Conviction Holds
First, Google Cloud is no longer a side story. Segment revenue accelerated to $24.77 billion, up 82%, with nearly 90% of the Fortune 100 now on Gemini Enterprise. Cloud backlog cleared $460 billion in Q1. That is contracted future revenue larger than the market cap of most companies I own.
Second, the ad flywheel is accelerating, not fading. AI Mode is driving higher overall query volume rather than cannibalizing ad inventory, and Search revenue climbed 17% while YouTube ads grew 13%. The Gemini App reached 950 million monthly active users, and Gemini models process 22 billion API tokens per minute.
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