Alphabet Inc.

(NASDAQ Global Select)
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Very Bullish +78

Alphabet Stock Is Up 46% Since Last October. Is It Still a Buy?

AI model release Capital raising Guidance raised AI-generated analysis

📈 GOOGL stock has gained 46% over the past year, closing at $352 on October 9, 2026.

☁️ Google Cloud revenue surged 82% year-over-year to reach $24.8 billion in the second quarter.

🤖 Alphabet announced Gemini 4 Argon as its new flagship AI model following the recent stock rally.

💰 The company raised equity offering plans to $84.75 billion, including a strategic investment from Berkshire Hathaway.

📊 Q3 revenue beat estimates at $119.8 billion, growing 24% compared to the prior year period.

🏗️ CFO Anat Ashkenazi raised 2026 capital spending guidance to $195-$205 billion for infrastructure expansion.

📉 Analysts hold 44 buy ratings with a mean price target of $429, implying 22% upside from current levels.

🔮 A mid-case model projects GOOGL reaching $708 by December 2030 based on 16.8% annual revenue growth.

⚠️ Increased infrastructure investment is expected to continue putting pressure on the company's P&L margins.

📅 Q3 earnings results are scheduled for release on October 28, offering a key look at profitability trends.

Bullish Signals
  • Alphabet stock has rallied 46% over the past year to close at $352, driven by strong momentum in its core business segments.
  • Google Cloud revenue exploded 82% year-over-year to $24.8 billion in Q2, demonstrating significant growth acceleration.
  • The company successfully raised equity offerings totaling $84.75 billion, securing a major investment from Berkshire Hathaway.
  • Q3 revenue of $119.8 billion beat analyst estimates of $116.9 billion, showing continued top-line strength.
  • Analyst consensus is heavily bullish with 44 buy ratings and a mean price target of $429, suggesting substantial upside.
  • A proprietary valuation model projects GOOGL reaching $708 by December 2030, implying an 18% annualized return.
  • The company is launching Gemini 4 Argon, its new flagship AI model, to maintain its competitive edge in artificial intelligence.
Risk Factors
  • CFO Anat Ashkenazi warned that the jump in infrastructure investment will continue to put pressure on the P&L.
  • The company raised capital spending guidance to $195-$205 billion, which may impact short-term profitability margins.
Full Analysis
Alphabet (GOOGL) shares have surged 46% over the past year, closing at $352 on October 9, 2026. This significant rally follows a strong second quarter where Google Cloud revenue accelerated to $24.8 billion, representing an 82% year-over-year increase. The company recently announced Gemini 4 Argon as its new flagship AI model, further bolstering investor confidence in its technological advancements. Financial performance remains robust with Q3 revenue up 24% to $119.8 billion, beating analyst estimates of $116.9 billion. However, the company is undertaking a major capital expansion, raising plans for equity offerings totaling $84.75 billion and increasing its 2026 capital spending guidance to between $195 billion and $205 billion. CFO Anat Ashkenazi noted that this infrastructure investment will continue to exert pressure on the profit and loss statement. Analyst sentiment is overwhelmingly positive, with 44 buy ratings and a mean price target of $429, which sits 22% above the current stock price. A proprietary mid-case model values GOOGL at $708 by December 2030, implying an 18% annualized return. Investors are closely watching upcoming Q3 results on October 28 to determine if Alphabet's profitability can sustain its high-margin assumptions amidst heavy infrastructure spending.