Alphabet can fund Waymo from its advertising and cloud businesses, but the spending is costly and its payoff is uncertain. In Q2, revenue rose 24% to $119.8 billion, Google Cloud grew 82% to $24.8 billion, and operating margin reached 34%, showing the core business can still finance new initiatives. However, Other Bets, which includes Waymo, posted a $1.8 billion operating loss, and free cash flow turned negative as $44.9 billion in capital spending exceeded $39.1 billion of operating cash. At about 22.83 times forward earnings, the article argues core growth supports holding the shares, but Waymo alone does not justify a stronger buy case.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Alphabet (GOOGL): Does Its Valuation Account for Waymo’s Potential?
Read the original on Yahoo Finance ↗
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GOOGLvaluationWaymoself-driving
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.3T |
| Close on 10/20/2026 | 340.24 |
| Change that session | -1.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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