<div id="readability-page-1">Alphabet (GOOG 0.51%) (GOOGL 0.50%) is one of the biggest bargains on Wall Street right now. Its valuation has seldom reached this level over the past decade, which should prompt investors to start asking questions about why it has become so cheap. I think this valuation drop is largely due to overblown fears regarding generative AI, and investors need to understand the true impacts of generative AI on the broader population, rather than just a few niche cases. If you can do that, then it's clear that Alphabet's stock has substantial value right now. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjMyNzgvcGVyc29uLXVzaW5nLXRoZWlyLXBob25lLWluLWJlZC5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjMyNzgvcGVyc29uLXVzaW5nLXRoZWlyLXBob25lLWluLWJlZC5qcGcmdz03MDA"/>Image source: Getty Images. </div> <h2>Google Search engine is still putting up excellent growth</h2> Alphabet is the parent company of Google, and its most valuable property is the Google Search engine. More than half of Alphabet's revenue comes from this division, so ensuring its success is critical to the long-term success of the overall company. However, many investors are convinced that the rise of generative AI technologies could render Google Search obsolete. Many investors point toward Google's search engine market share dropping below 90% for the first time since 2015 as a warning sign, but they are ignoring some blatant facts. First, its market share remains quite strong, still holding at 87% as of June. If you surveyed any company in America about whether they'd be satisfied with an 87% market share, you'd be hard pressed to find a respondent who said &#34;no.&#34; Google Search remains the dominant search engine, and it has become practically synonymous with using the internet. Second, Google has rolled out its AI search overviews, which seamlessly integrate generative AI technology alongside the familiar search interface. While this feature has had some hiccups, it's overall a great addition. For now, it will likely be all the improvement needed for the vast majority of the user base to stick with Google versus another search engine or a generative AI tool. There will be some defectors, but given how long generative AI tools have been around, many of the people who will replace their internet search habits may have already made the switch. Lastly, this drop in market share hasn't shown up in Alphabet's results yet. In the first quarter, Google Search's revenue rose 10% year over year. This doesn't sound like a company that's suffering from a shrinking audience, and it leads me to believe that the fears of Alphabet's demise are way overblown. As a result, I believe it's time to view the stock as a potential buying opportunity. <h2>Alphabet's valuation is historically cheap</h2> Alphabet's stock trades for 19.9 times trailing earnings, a level that it has only traded at once over the past decade. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/97793d4010c1e617cc7703f95482b187.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="441" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/97793d4010c1e617cc7703f95482b187.png"/> GOOGL PE Ratio data by YCharts The last time it reached this point, at the end of 2022 and the start of 2023, the market was convinced that the economy was heading into a recession, and every single stock had sold off to a pretty cheap valuation. However, the market is currently at a high valuation point and has left Alphabet behind. As a result, this is the only time in the past decade that Alphabet has been this inexpensive compared to the broader market. The S&amp;P 500 index trades at 24.1 times trailing earnings, indicating Alphabet is trading at a hefty discount to the broader market. Since Alphabet has not traded at such a deep discount to the market for so long, I believe that now is a once-in-a-decade opportunity to pick up Alphabet shares at an extremely attractive price. </div>

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Alphabet's stock is currently seen as a significant buying opportunity due to its historically low valuation, trading at 19.9 times trailing earnings, compared to the S&P 500's 24.1 times. Concerns over generative AI impacting Google Search are considered overblown, as the search engine still holds an 87% market share and has shown a 10% revenue increase year-over-year. This unique valuation drop presents a rare chance for investors to acquire Alphabet shares at a discount, making it a compelling investment choice.

- Alphabet's stock is currently undervalued, trading at 19.9 times trailing earnings, a level rarely seen in the past decade.  
- Concerns about generative AI impacting Google Search are overstated, as the search engine still holds an 87% market share and has shown a 10% revenue increase year over year.  
- Given its historical discount compared to the S&P 500, this presents a unique buying opportunity for investors.

A Once-in-a-Decade Opportunity: Alphabet's Stock Looks Like a Brilliant Buy Right Now