Why is Google specifically the cheapest company in the 'Magnificent Seven'?

Google will publish its third-quarter results this evening. Investors will focus on cash flow, after a negative cash flow of 6 billion dollars in the previous quarter due to massive investments in artificial intelligence. Alphabet's stock trades at a multiple of 16, the lowest in the 'Magnificent Seven'.

The technology giant Google will publish this evening (Wednesday) its financial results for the third quarter of 2026. Investors will focus on the company's cash flow, after in the previous quarter it recorded, for the first time since its IPO, a negative free cash flow of about 6 billion dollars. The main reason is massive investments in artificial intelligence infrastructure, which caused the company to raise its annual investment forecast to about 200 billion dollars. The investments raise questions among investors about when they will see a return. Alphabet's stock trades at a price-to-earnings multiple of about 16, the lowest among the 'Magnificent Seven', among other things due to a one-time accounting profit. However, even excluding this profit, the multiple is lower than that of Microsoft and Nvidia. The low multiple reflects investors' concerns, but positive reports could lead to a rise in the stock.