Alphabet (NASDAQ:GOOG) Stock Price Up 2.3% - Still a Buy?

Key Points

• Alphabet shares rose 2.3% to $326.57 after the company reported exceptional second-quarter results, including 24.2% year-over-year revenue growth to $119.8 billion and EPS of $9.11, well above expectations.
• Google Cloud revenue reportedly increased 82% as enterprise demand for AI services accelerated, while Search and YouTube remained resilient. Analysts maintain a broadly bullish view, with an average “Buy” rating and a $410.09 price target.
• Investors are weighing Alphabet’s growth prospects against risks from its increased AI spending: the company raised its 2026 capital-expenditure outlook to $195 billion–$205 billion, contributing to negative quarterly free cash flow and valuation concerns.

Shares of Alphabet Inc. (NASDAQ:GOOG - Get Free Report) shot up 2.3% during mid-day trading on Monday . The company traded as high as $330.10 and last traded at $326.57. Approximately 21,334,514 shares changed hands during mid-day trading, a decline of 1% from the average session volume of 21,566,814 shares. The stock had previously closed at $319.09.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet reported a strong second quarter, with revenue up 24% year over year to $119.8 billion and earnings per share of $9.11, substantially exceeding analyst expectations. Alphabet Stock Is Gaining Monday: What's Going On?
• Positive Sentiment: Google Cloud revenue reportedly surged 82%, supported by enterprise adoption of AI services, improving profitability and a large backlog. Analysts and bullish commentators view Cloud momentum as evidence that Alphabet’s AI infrastructure investments are beginning to generate returns. Alphabet Q2 Strength Reinforces the Bullish Case
• Positive Sentiment: Search and YouTube engagement remained resilient as Alphabet integrates AI across its products. Several analysts maintained bullish ratings, with reported price targets around $410 to $450, encouraging dip-buying despite some target reductions. GOOG Stock Rebounds as Wall Street Continues to Back AI Strategy
• Positive Sentiment: YouTube reached a multiyear agreement to include Peacock content for U.S. YouTube Premium subscribers beginning in 2027. The deal expands the subscription offering with sports, films and television programming, potentially supporting user retention and subscription growth. NBCUniversal and YouTube Ink Peacock Deal
• Neutral Sentiment: Alphabet raised its 2026 capital-expenditure outlook to approximately $195 billion-$205 billion to fund AI data centers and computing capacity. Management’s spending signals confidence in demand, but investors are weighing the long-term payoff against near-term cash-flow pressure. Alphabet's AI Spending Crushes Its Free Cash Flow
• Negative Sentiment: AI spending produced negative free cash flow for the quarter and pushed Alphabet below its 200-day moving average. Skeptics also point to valuation sensitivity, competitive risks and investor Steve Eisman’s decision to exit Alphabet to reduce exposure to the AI trade. Alphabet's AI Spending and Free Cash Flow

Analyst Ratings Changes

Several analysts have weighed in on GOOG shares. Freedom Capital upgraded Alphabet from a "hold" rating to a "strong-buy" rating in a research note on Thursday. Wedbush started coverage on Alphabet in a research note on Thursday, July 16th. They issued an "outperform" rating and a $445.00 price objective for the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Alphabet in a report on Friday, July 17th. The Goldman Sachs Group reiterated a "buy" rating and issued a $450.00 target price on shares of Alphabet in a research report on Thursday, May 21st. Finally, Wolfe Research set a $460.00 price target on shares of Alphabet in a report on Thursday. Six investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Buy" and an average price target of $410.09.

Alphabet Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.72 and a quick ratio of 2.64. The company has a market capitalization of $3.96 trillion, a PE ratio of 16.40, a price-to-earnings-growth ratio of 1.08 and a beta of 1.23. The firm's fifty day simple moving average is $360.63 and its 200 day simple moving average is $337.53.

Alphabet (NASDAQ:GOOG - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, beating analysts' consensus estimates of $2.87 by $6.24. The business had revenue of $119.80 billion during the quarter, compared to analyst estimates of $116.53 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The company's revenue was up 24.2% on a year-over-year basis. During the same quarter last year, the business posted $2.31 EPS. On average, research analysts predict that Alphabet Inc. will post 17.25 EPS for the current year.

Alphabet Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Friday, September 4th. Alphabet's dividend payout ratio (DPR) is 4.42%.

Insider Activity at Alphabet

In other Alphabet news, Director Frances Arnold sold 112 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $351.28, for a total value of $39,343.36. Following the sale, the director owned 18,833 shares in the company, valued at approximately $6,615,656.24. This represents a 0.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director John L. Hennessy sold 1,050 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $368.63, for a total transaction of $387,061.50. Following the sale, the director directly owned 1,481 shares in the company, valued at $545,941.03. The trade was a 41.49% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 159,415 shares of company stock valued at $7,672,279 in the last 90 days. 12.99% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in shares of Alphabet during the 3rd quarter worth approximately $31,000. Nvest Wealth Strategies Inc. purchased a new stake in Alphabet in the 4th quarter worth $38,000. Lifetime Wealth Management P.C. purchased a new stake in Alphabet in the 4th quarter worth $38,000. Bard Associates Inc. acquired a new position in Alphabet during the fourth quarter worth $41,000. Finally, Towne Trust Company N.A raised its position in Alphabet by 34.0% during the fourth quarter. Towne Trust Company N.A now owns 134 shares of the information services provider's stock worth $42,000 after acquiring an additional 34 shares during the period. Hedge funds and other institutional investors own 27.26% of the company's stock.

About Alphabet

Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.

Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.

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