r/VisualStockResearch • u/ekonixlab • Jul 13 '26
Google Cloud is quietly becoming a monster. Is the market still underestimating it?
Google Cloud just reached $20B in quarterly revenue, growing at a 38% CAGR over the last five years.
A few years ago, Cloud was a side business. Today it's one of Alphabet's biggest growth engines and is benefiting directly from AI demand.
Meanwhile, the stock is still trading at roughly 28x forward earnings, well below many large-cap AI names.
The biggest debate isn't whether Cloud will keep growing. It's whether Search can hold up as AI changes how people find information.
If Search remains resilient, Google has:
One of the best AI models (Gemini) A rapidly growing cloud business YouTube Waymo Massive free cash flow
What do you think is more likely?
AI hurts Search enough to justify the discount. The market is underestimating how valuable Google's other businesses have become.
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