LA protests hit Waymo; Is Google stock at risk?

Core Viewpoint - Alphabet is experiencing investor anxiety due to recent attacks on Waymo self-driving cars during protests in Los Angeles, which could impact the company's growth strategy and lead to short-term volatility and financial losses [1][2] Group 1: Waymo and Market Impact - Waymo is a crucial part of Alphabet's future growth strategy, with the potential for public relations setbacks to affect investor confidence [1] - California is a key market for Waymo, covering approximately 20% of all rides in San Francisco, and any delays in infrastructure expansion could create further challenges [2] Group 2: Financial Performance - Alphabet reported a 14% year-over-year revenue growth, reaching $90.2 billion for Q1 2025, with significant contributions from core segments like YouTube and cloud services [3] - Google Cloud achieved $2.2 billion in operating income for Q1 2025, reflecting a 28% year-over-year growth [3] Group 3: Valuation and Revenue Streams - Despite strong performance, Alphabet's stock appears undervalued with a price-to-earnings (PE) ratio under 19, significantly lower than AI competitors like NVIDIA, which has a PE ratio of 46.47 [4] - YouTube's advertising and subscription services generate approximately $10 billion per quarter, enhancing Alphabet's financial resilience [5] - The company is also focusing on monetizing AI tools, with plans like Google AI Pro at $20 per month and Google AI Ultra at $250 per month [5] Group 4: Investment Considerations - Betting against Alphabet's stock due to potential short-term setbacks from the Waymo incidents may be risky, as the company's diverse revenue streams are likely to facilitate recovery from short-term volatility [6]