Why is Google the cheapest stock in the 'Magnificent Seven'?

Google will publish its third-quarter earnings this evening; investors will focus on cash flow after a negative free cash flow of $6 billion in the previous quarter, due to massive investments in artificial intelligence. Alphabet's stock is trading at a P/E ratio of 16, the lowest among the 'Magnificent Seven'.

Tech giant Google will publish its financial results for the third quarter of 2026 this evening (Wednesday). Investors will focus on the company's cash flow, after it recorded its first negative free cash flow of approximately $6 billion since its IPO in the previous quarter. The main reason is massive investments in artificial intelligence infrastructure, which have led the company to raise its annual investment forecast to around $200 billion. The investments raise questions among investors about when they will see returns. Alphabet's stock is trading at a P/E ratio of about 16, the lowest among the 'Magnificent Seven', partly due to a one-time accounting gain. However, even excluding this gain, the multiple is lower than that of Microsoft and Nvidia. The low multiple reflects investor concerns, but positive earnings could lead to a rise in the stock.