Alphabet (GOOG) fell 12% on Oct. 29 after its third-quarter report, its worst day since its 2004 IPO. NYU Stern professor Scott Galloway calls AI an existential threat to Search, yet says the stock looks like “a buying opportunity” at a P/E of 14.6 versus 19.5 for the S&P 500. The article notes that gains on private stakes have inflated reported earnings, so on normalized earnings the stock trades at about 20x forward, below its five-year average of 23x. Third-quarter revenue rose 25% to $128 billion, with Google Cloud up 103% to $30.7 billion, while Search & other grew 12%, slower than in the second quarter. The author thinks the market is pricing Search as if it is already shrinking, but flags that capex, due in early February, could outrun Cloud's $561 billion backlog.
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GOOGLvaluationcloud computingearnings
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 10/30/2026 | 279.84 |
| Change that session | -1.40% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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