Dear Google Stock Fans, Mark Your Calendars for May 19

As one of the most anticipated Google I/O events of recent years, the upcoming Google event today, May 19, will play a vital role in determining whether Alphabet (GOOGL) is capable of further cementing its position in the AI race against both OpenAI and Microsoft (MSFT).

Here's what investors should know as the company kicks off its Google I/O event.

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About Alphabet Stock

One of the most powerful companies in the tech industry, Alphabet operates in digital advertising, cloud computing, AI infrastructure, consumer hardware, and autonomous vehicles. Headquartered in Mountain View, California, the company has a market capitalization of about $4.8 trillion.

Alphabet stock has had a stellar performance over the past few months. Yesterday, GOOGL hit a new 52-week high of $408.61. The stock has also rallied approximately 140% from its 52-week low of $162 per share.

Investors are increasingly confident that Google's AI investments are being translated into monetization opportunities rather than defensive spending against competitors. Although the S&P 500 ($SPX) has posted decent gains over recent months, Alphabet has significantly outperformed the index due to accelerating cloud growth, AI-powered Search engagement, and improved sentiment surrounding Gemini.

Notably, Alphabet looks pretty reasonably valued with respect to its growth prospects. GOOGL stock trades at 27.7 times forward earnings and 11.9 times sales, supported by an impressive operating profit margin of 32.8% and return on equity of almost 39%. Given that the company grows revenues at a rate of more than 20%, and continues to expand margins, these metrics cannot be seen as excessively expensive, especially considering Alphabet's peers in the mega-cap AI space. Furthermore, the P/E-to-growth (PEG) ratio of 1.7 times suggests that earnings growth is partially responsible for such high valuation metrics.

Dividends are another reason to consider Alphabet as a lucrative investment. The Big Tech firm recently increased its quarterly dividend by 5% to $0.22, while continuing active investments in AI infrastructure and buybacks.

Alphabet Beat on Earnings

On April 29, Alphabet reported outstanding first-quarter 2026 results, which helped increase investor optimism about its prospects. Specifically, the company posted revenue of $109.9 billion, up 22% year-over-year (YOY). Diluted EPS increased 82% YOY to $5.11 per share. Additionally, Alphabet continued expanding its operating margin to 36.1% despite significant investments in AI.