A Wall Street analyst has reiterated the stock’s bullish outlook alphabet (Nasdaq: Google), which has witnessed positive momentum in recent sessions.
Specifically, Evercore ISI analyst Mark Mahaney set the task stock Target price of $400 while maintaining an “Outperform” rating.
The new price target indicates a potential upside of 16% for GOOGL stock from its last closing value of $342. It is worth noting that over the past month, Alphabet stock has risen by 18%.
The analyst call reflects expectations of stable performance in the near term, with expectations pointing to modest profits in the first quarter.
The outlook is based on resilient demand across Alphabet’s core businesses. Search remains the primary driver, with ad spending showing signs of acceleration and supporting a stable revenue outlook.
Meanwhile, Mahaney noted that the cloud division continues to show strong momentum, highlighted by a sharp increase in backlog, indicating continued enterprise demand even amid broader supply constraints.
However, the broader picture is not without challenges. According to the analyst, YouTube’s performance appears mixed, with signs of a potential slowdown as the platform navigates shifts in monetization dynamics.
In addition, it rises investment in artificial intelligence Infrastructure and data centers are expected to weigh on margins, as higher operating costs offset part of overall growth.
Google stock momentum
These expectations come as GOOGL shares have risen over the past year, driven by strong growth in Google Cloud, AI-powered search, and YouTube. The recent gains follow the launch of new AI products, with optimism about Gemini adoption and rising demand for the cloud.
Investors are now focusing on Alphabet’s earnings for the first quarter of 2026, due on April 29. Wall Street expects revenue of about $106 billion to $107 billion, up about 18% to 20% year over year, and adjusted earnings per share of $2.62.
Key areas to watch include Google Cloud’s growth, after a nearly 48% jump in Q4 2025, and progress in AI monetization.
Another major topic is Alphabet’s aggressive $175 billion 2026 capital spending plan, targeting AI servers, data centers and networks.
While this may put pressure on margins and free cash flow in the near term, many analysts see it as critical to maintaining long-term leadership in AI infrastructure.
CEO Sundar Pichai highlighted AI as a key driver of growth, citing increased search usage and a cloud backlog that has more than doubled to $240 billion.
