{"id":3128,"date":"2026-11-02T16:43:09","date_gmt":"2026-11-02T16:43:09","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2026\/11\/02\/alphabet-stock-rebounds-as-analysts-defend-ai-investment-and-cloud-growth\/"},"modified":"2026-11-02T16:43:09","modified_gmt":"2026-11-02T16:43:09","slug":"alphabet-stock-rebounds-as-analysts-defend-ai-investment-and-cloud-growth","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2026\/11\/02\/alphabet-stock-rebounds-as-analysts-defend-ai-investment-and-cloud-growth\/","title":{"rendered":"Alphabet stock rebounds as analysts defend AI investment and Cloud growth"},"content":{"rendered":"
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Alphabet stock (NASDAQ: GOOGL) gained more than 1% on Monday as investors returned to the shares following last week’s sharp post-earnings sell-off<\/a>, which wiped out approximately $505 billion in market capitalisation in a single session.<\/p>\n

The recovery comes as investors reassess the company’s third-quarter results and its long-term growth prospects. <\/p>\n

Although Alphabet reported an earnings-per-share miss against Wall Street expectations, its rising capital expenditure and negative free cash flow also raised concerns about the financial implications of its artificial intelligence (AI) investments.<\/p>\n

However, analysts have continued to highlight growth opportunities across Google Cloud, AI infrastructure and Search, providing support for the stock.<\/p>\n

Analysts maintain bullish ratings despite price target cuts<\/h2>\n

Several Wall Street analysts maintained positive ratings on Alphabet while lowering their price targets following the company’s quarterly results.<\/p>\n

Wells Fargo analyst Ken Gawrelski maintained an Overweight rating but reduced his price target to $371 from $417. <\/p>\n

He cited the increasing penetration of AI Overviews, which could weigh on paid search clicks through at least the first quarter of 2027.<\/p>\n

Gawrelski also lowered his 2027 and 2028 operating income estimates by 3%. <\/p>\n

His earnings-per-share estimates for the two years were reduced by 2% and 4%, respectively.<\/p>\n

He expects stronger Google Cloud revenue, including sales of its tensor processing units (TPUs), to help offset slower growth in Search.<\/p>\n

Cantor Fitzgerald analyst Deepak Mathivanan also maintained a Buy rating while cutting his price target to $350 from $420.<\/p>\n

Mathivanan noted that operating profit missed estimates by 7%, while Search growth slowed. <\/p>\n

However, he highlighted Google Cloud’s growth of more than 100%, supported by demand for cloud services and TPUs.<\/p>\n

He believes Alphabet remains well positioned across AI applications, models and infrastructure.<\/p>\n

Google Cloud growth supports AI investment case<\/h2>\n

Google Cloud has emerged as an important part of Alphabet’s investment narrative as demand for AI computing infrastructure increases.<\/p>\n

The division reported revenue of $30.7 billion<\/a>, representing 103% year-over-year growth. <\/p>\n

Its backlog also reached $561 billion, highlighting the scale of demand for its services.<\/p>\n

BMO Capital analyst Brian Pitz maintained a Buy rating but lowered his price target to $425 from $480.<\/p>\n

Pitz highlighted increasing Search usage driven by AI features and said investors could be underestimating the future profit potential of Google’s TPU business.<\/p>\n

He expects the business to provide additional growth opportunities in 2027 and 2028.<\/p>\n

Meanwhile, Citi raised its estimates for Alphabet’s AI service revenue through 2028, citing accelerating demand from major cloud providers.<\/p>\n

These developments suggest that analysts continue to see opportunities for Alphabet to monetise its AI investments, even as the spending cycle puts pressure on near-term cash flow.<\/p>\n

Alphabet’s financing and spending remain in focus<\/h2>\n

Alphabet’s heavy investment in AI infrastructure remains a key concern for investors, particularly after capital expenditure pushed free cash flow into negative territory in the third quarter.<\/p>\n

The company also announced a 6 billion euro bond offering, signalling continued access to capital markets as it finances its spending requirements.<\/p>\n

Despite the concerns, analyst sentiment remains broadly positive. <\/p>\n

According to TipRanks, Alphabet has a Strong Buy consensus rating based on 28 Buy ratings and four Hold ratings received over the past three months.<\/p>\n<\/p>\n

The post Alphabet stock rebounds as analysts defend AI investment and Cloud growth<\/a> appeared first on Invezz<\/a><\/p>\n

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Alphabet stock (NASDAQ: GOOGL) gained more than 1% on Monday as investors returned to the shares following last week’s sharp post-earnings sell-off, which wiped out approximately $505 billion in market capitalisation in a single session.The recovery comes as investors reassess the company’s third-quarter results and its long-term growth prospects. Although Alphabet reported an earnings-per-share miss…<\/p>\n","protected":false},"author":1,"featured_media":3129,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/3128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=3128"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/3128\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/3129"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=3128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=3128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=3128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}