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Yes. In a May 17, 2025 article, The Motley Fool reported that Alphabet’s share price was higher one year after each of three earlier occasions when its trailing price-to-earnings (P/E) ratio fell to roughly 17: by 120% after the 2008 reading, 56% after the 2012 reading, and 47% after the 2022 reading. Those three historical outcomes do not establish that the stock will rise after another low P/E reading.
What happened after the three earlier low P/E readings?
The Motley Fool article by Keithen Drury, published May 17, 2025, presents the following historical figures, crediting YCharts for the data. The returns are the article’s reported one-year stock-price changes after each observation; they are not independently recalculated here.
| Observation date | Reported P/E low | Reported share-price change one year later |
|---|---|---|
| November 20, 2008 | 16.2 | +120% |
| July 10, 2012 | 16.9 | +56% |
| November 2, 2022 | 16.6 | +47% |
These numbers describe three selected historical observations, not a rule or a forecast. The Motley Fool article does not establish that a P/E near 17 reliably predicts a gain, nor does this small set show what happened after every other valuation level or market condition.
What the May 2025 article argued
At the time of publication, Drury said Alphabet was trading at approximately 17 times trailing earnings. He framed the low valuation against investor concern that generative AI might weaken Google Search or replace some of its use. The article argued that Alphabet’s search business had continued to grow and that AI-generated summaries could help keep Search relevant.
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The article reported 10% Google Search revenue growth in the prior quarter, attributing that figure to Alphabet management. The passage does not identify the quarter, so the figure should be understood as part of the article’s May 2025 argument, not as a current growth rate. For current company results, consult Alphabet Investor Relations, which links to earnings releases, financial results, and SEC filings.
Why the historical pattern is not a forecast
- Three observations are a limited sample. The reported gains show what followed those particular dates; they do not show that the valuation itself caused the gains or that similar results are likely to recur.
- The business and risks can change. The 2025 article singled out generative AI and its potential effect on Search as a concern. A low P/E cannot resolve how that competition will affect future revenue, earnings, or investor expectations.
- A P/E ratio depends on earnings as well as price. A low multiple can reflect a falling share price, changing earnings, or both. The three figures alone do not establish whether Alphabet was undervalued on any given date.
- The reported figures have a source and a method. The Motley Fool table credits YCharts, but the article’s data conventions and the subsequent returns have not been independently verified here.
How to use the article as an investor
Treat the historical table as context for a dated investing argument, not as a buy signal. Before making a decision, check Alphabet’s latest earnings and filings, assess whether Search and other businesses are growing, and consider how AI competition could affect future results. Compare valuation and business performance using data from consistent dates and methods; an older P/E reading does not tell you the stock’s current valuation.
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Drury concluded in the May 2025 article that Alphabet was a “strong buy,” citing anticipated persistent double-digit growth and earnings-multiple expansion. That was his opinion at that time, not a current recommendation or a conclusion supported by the three historical returns alone. The article disclosed that Drury owned Alphabet shares and that The Motley Fool owned and recommended Alphabet.
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