Alphabet Faces Gemini AI Setback but Analysts Remain Bullish on GOOGL Stock
Alphabet (GOOGL) received a bullish analyst upgrade from BMO Capital, which raised its price target to $455, citing strong Google Cloud demand and expanding capacity. However, the stock faces headwinds from the reported delay of Gemini Pro 3.5 after it failed internal benchmarks, raising questions about returns on massive AI infrastructure spending. Alphabet raised its 2026 capital spending guidance to $190 billion, with further increases expected in 2027. The cloud backlog has grown to over $460 billion. Despite the Gemini setback, multiple analysts including KeyBanc, Morgan Stanley, and Bank of America have raised price targets ahead of Q2 earnings on July 22. Wedbush set the highest target at $671. The stock has gained 89.9% over 12 months but is up only 12.25% year-to-date, recently falling on tech selloff and Gemini news.
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Alphabet Faces Gemini AI Setback but Analysts Remain Bullish on GOOGL Stock
Alphabet (GOOGL) received a bullish analyst upgrade from BMO Capital, which raised its price target to $455, citing strong Google Cloud demand and expanding capacity. However, the stock faces headwinds from the reported delay of Gemini Pro 3.5 after it failed internal benchmarks, raising questions about returns on massive AI infrastructure spending. Alphabet raised its 2026 capital spending guidance to $190 billion, with further increases expected in 2027. The cloud backlog has grown to over $460 billion. Despite the Gemini setback, multiple analysts including KeyBanc, Morgan Stanley, and Bank of America have raised price targets ahead of Q2 earnings on July 22. Wedbush set the highest target at $671. The stock has gained 89.9% over 12 months but is up only 12.25% year-to-date, recently falling on tech selloff and Gemini news.