$GOOGL · Parkev Tatevosian, CFA · 2026-11-05

I think the main reason everyone is talking about Alphabet stock right now is the significant drop in the share price after the company announced its quarterly financial results.

This might make you think that everything in the quarterly results was bad or negative, but that was not the case. It was a mixed quarter, with some positive aspects and some negative aspects.

Investors are already beginning to see the benefits of Alphabet's massive investments in artificial intelligence. The company announced a 103% increase in revenue in the "Google Cloud" sector.

They also reported having more than one billion active users of the "Gemini" application, and that the usage rates of their own chips, "TPU", are increasing. So, there are indeed benefits to their massive investments, and Alphabet has told investors, "We have more models coming."

Some of them include more efficient versions to help developers improve speed and cost, and deploy across their billions of users.

Remember that they have many different products including Gmail, a suite of productivity tools, Google Search, and other products with more than one billion monthly active users.

Thus, as they deploy more effective and efficient AI models across their productivity toolkit and various categories, this is likely to lead to increased user engagement and satisfaction.

You may have already heard that Google Search is slowing down, and that was one of the negative aspects that appeared in the company's quarterly results. But, upon closer examination, the situation wasn't so bad.

The reason is that Alphabet is currently focused on building the best user experience for search, with monetization to follow later. They are trying to get this transition done properly from traditional search engine results to AI mode and AI summaries, etc., and have not really focused on maximizing profit from it.

They are just trying to fix the user experience first. After that, they can focus on making profits.

Of course, as more people search using AI mode and use AI summaries, these products generate less revenue compared to traditional Google search engine activity. Thus, this transition creates a kind of challenge for their revenues in this category.

I look forward to seeing more of this type of experimentation, as they say, "You'll see us expanding our post-search proxy experiments in the Gemini app to include Chrome, Android, and Workspace products as well."

Interestingly, Google's Waymo has logged more than 300 million fully autonomous miles. Waymo now operates in 15 major U.S. cities, and recently opened the service to the public in San Antonio, San Diego, and Tampa, with plans to expand to Canada, Germany, Singapore, and Spain.

But, if you're thinking about actual, tangible results, Google's Waymo is way ahead, expanding into more cities and offering more paid rides. And I think this will remain the case.

I believe that bureaucracy in local authorities will prevent this from happening and will require local expansion, whether at the state or city level, with testing and development, just as Google's Waymo has been developing so far.

So, as we've seen here, the entire financial quarter wasn't bad news for Alphabet. There were some downsides, such as the slowdown in Google Search, but there were other categories, such as interacting with their suite of AI tools, which was very positive for me as an Alphabet stock shareholder.