A Look at Google’s (GOOGL) Valuation Following Strong Q3 Results and Accelerating AI Growth

Alphabet (GOOGL) just delivered third-quarter results that surpassed Wall Street forecasts, with revenue and earnings powered by its leading Search and Cloud businesses. Management credited AI technology and sustained enterprise demand for driving these gains.

See our latest analysis for Alphabet.

Building on its standout results, Alphabet’s momentum has clearly caught investors’ attention. The stock’s 1-year total shareholder return of nearly 65% speaks to both robust business performance and enthusiasm for Alphabet’s deepening push into AI and cloud. Short-term price action has been especially strong, with an eye-catching 44% share price return over the last 90 days. This suggests optimism is building as the company announces fresh AI wins, dividend payments, and large buybacks.

If Alphabet’s rapid progress in AI and cloud has you exploring what else is making waves in tech, it’s an ideal time to discover See the full list for free.

With shares soaring and Wall Street piling on bullish forecasts, the real debate now is whether Alphabet shares still offer investors attractive value, or if today’s prices already reflect the company’s future growth potential.

Most Popular Narrative: 6.3% Undervalued

Alphabet’s current share price sits just below what the most widely followed narrative, according to oscargarcia, sees as its fair value. The numbers suggest investor excitement, but are the key growth engines being underestimated? Let’s look at the driving assumptions.

Alphabet is a compounding machine hiding under an ad empire. With AI monetization finally catching fire, Cloud turning profitable, and more YouTube monetization coming, this isn’t just a “big tech stock”; it’s an innovation platform priced like a mature business. You get high-margin growth, impressive cash flow, a fortress balance sheet, and exposure to everything from AI to driverless cars. It’s tech diversification inside a single ticker.

Read the complete narrative.

Ever wonder what financial ingredients are fueling this ambitious price target? This narrative combines premium profit margins and rapid cloud growth. Craving the details that back up this bold call? Unlock the full breakdown to see which aggressive forecasts power this valuation.

Result: Fair Value of $300.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution missteps with new cloud deals or fiercer competition in AI infrastructure could quickly challenge Alphabet’s bullish outlook.

Find out about the key risks to this Alphabet narrative.

Build Your Own Alphabet Narrative

If you see things differently or want to take a hands-on approach, it’s easy to dive into the data and craft your own perspective in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Alphabet.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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