The search giant currently trades at a price-to-earnings ratio ( P/E) of just 18.5, which is close to a 30% discount from the S&P 500 's P/E of 25.9. That discount comes as Alphabet's growth remains solid. In its first-quarter earnings report, revenue rose 12% to $90.2 billion, with operating income jumping 20% to $30.6 billion.

Looking at Google Services in more detail, it was especially Google subscriptions, platforms, and devices, which increased with 18.8% year-over-year to $10,379 million. YouTube ads also increased 10.3% year-over-year to $8,927 million in Q1/25.

Alphabet stock was sliding Tuesday afternoon as the Google I/O keynote announcements initially seemed to underwhelm investors. Alphabet shares dropped as the company shared AI news, with several of the AI updates announced scheduled to come in the weeks and months ahead.

Alphabet's stock rarely gets this cheap, and right now could be a once-in-a-decade opportunity to scoop up shares at a historically low valuation.

Alphabet Inc. (NASDAQ:GOOGL)’s Google announced Google AI Ultra, a new high-end AI subscription service that costs $249.99 a month, at its annual developer conference, Google I/O.

Investors seem unimpressed by Google’s announcements during I/O 2025. Alphabet’s stock was down 1.2% during the keynote. However, other tech stocks, including Meta and Nvidia, were also down on Tuesday morning.

Alphabet stock, down for most of the day, saw its losses accelerate as Google CEO Sundar Pichai concluded the Google I/O keynote address. Shares were down 2% after the event ended. Investors have been

Volvo Cars and Alphabet's Google said on Wednesday the Swedish carmaker was now the lead development partner for Android automotive software, which should give its buyers access to new versions long before they are available via car industry rivals.

Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.