Is Alphabet (GOOGL) Still Undervalued?

Is Alphabet (GOOGL) Still Undervalued? Fahad Saleem Sat, June 13, 2026 at 9:42 PM GMT+7 3 min read GOOGL GOOG We just covered the Top 10 Stock Picks of 10 Famous Billionaires. Alphabet (NASDAQ:GOOGL) ranks #2 (see Top 5 Stock Picks of 5 Famous Billionaires). Top Pick Of: Chase Coleman — Tiger Global Management Alphabet (NASDAQ:GOOGL) is the biggest holding of billionaire Chase Coleman’s Tiger Global. What was once seen as a business at risk of being disrupted by AI has, instead, turned the tables. In Q1, Google Search rose about 19%, showing that AI is not reducing usage but actually increasing engagement across queries. YouTube advertising revenue grew 11%, supported by better AI-driven targeting and improved ad relevance. Subscription products also continued to scale, benefiting from deeper integration of AI across Google’s ecosystem. Google Cloud remains the biggest catalyst in the story. Revenue rose 63% in Q1, while operating margins expanded sharply as the business moved further into high-value enterprise workloads. The Cloud backlog came in at about $460 billion, giving strong visibility into future revenue. Alphabet (NASDAQ:GOOGL) custom TPU chips are also becoming a key advantage, supporting both cost efficiency and AI compute demand. Gemini has reached approximately 750 million monthly active users in its standalone app, while its models power over 2 billion monthly users through Google Search AI Overviews and AI Mode. Paid adoption is also scaling, with more than 8 million enterprise seats across thousands of companies. From a valuation perspective, the stock trades at roughly a mid-to-high 20s forward P/E (~26–28x). Earnings are expected to grow around high-20% to low-30% annually, driven by Search resilience, Cloud acceleration, and AI monetization across products. L1 Capital International Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2026 investor letter: Portfolio adjustments during the March 2026 quarter were relatively modest, but deliberate. We trimmed investments in AerCap, Alphabet Inc. (NASDAQ:GOOGL), HCA Healthcare and Weir Group at prices around the top end of our assessed fair value range, with all of these businesses benefitting from positive sentiment intra-quarter. Alphabet’s share price has more than doubled over the past 12 months. This reflects strong performance in core Search, continued momentum in Google Cloud Platform, and better-than-expected progress in AI (Gemini). Today Alphabet has a market capitalisation approaching US$4 trillion. Share prices and fair value are not always aligned, even for the world’s largest companies (Click Here to Read the Letter in Detail). While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

Is Alphabet (GOOGL) Still Undervalued?

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