Google: Strong, Profitable, and Still Undervalued

Google (Alphabet) Q1 Earnings Recap: Strong, Profitable, and Still Undervalued

Alphabet just reported solid earnings — and the market liked it. Revenue grew ~14% to $350B, with strong performance from Google Cloud and continued dominance in Search and YouTube. Free cash flow exceeded expectations, even with higher capex, and Waymo isn’t even priced into the current valuation.

Margins remain elite:

• Gross margin: 58%

• Profit margin: 28%

• Free cash flow margin: 21%

Based on discounted cash flow, the stock appears ~11–21% undervalued, and analysts see up to 25% upside. Despite concerns over AI disruption (e.g. OpenAI) and antitrust regulation, Google’s financials and moat remain best-in-class.

Bottom line: This is one of the strongest businesses in the world. Still growing. Still printing cash. Still worth buying.