Alphabet (NASDAQ:GOOGL) Stock Price Target Lowered at Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered Alphabet’s price target from $425 to $400 while maintaining an “outperform” rating, implying roughly 41.7% upside from the reported share price.
• Alphabet shares fell to $282.22 during Thursday trading after the company reported quarterly EPS of $2.12, below the $3.02 consensus estimate, while revenue of $127.58 billion narrowly missed forecasts.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and average price target of $412.82, though concerns include heavy AI infrastructure spending, weaker-than-expected search and YouTube advertising trends, and regulatory risks.

Alphabet (NASDAQ:GOOGL - Get Free Report) had its target price dropped by analysts at Royal Bank Of Canada from $425.00 to $400.00 in a research note issued on Thursday, Benzinga reports. The firm currently has an "outperform" rating on the information services provider's stock. Royal Bank Of Canada's price objective would indicate a potential upside of 41.73% from the stock's current price.

Several other analysts have also commented on the stock. The Goldman Sachs Group restated a "buy" rating and set a $385.00 price target on shares of Alphabet in a research report on Thursday. Evercore reiterated an "outperform" rating and issued a $450.00 price objective on shares of Alphabet in a research report on Wednesday, September 16th. Freedom Capital raised shares of Alphabet from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 23rd. DZ Bank upgraded Alphabet to a "strong-buy" rating in a research report on Thursday, July 23rd. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Alphabet in a research note on Thursday, October 15th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-six have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Alphabet has a consensus rating of "Buy" and an average price target of $412.82.

Alphabet Stock Performance

NASDAQ:GOOGL traded down $42.67 during mid-day trading on Thursday, hitting $282.22. The company's stock had a trading volume of 105,528,940 shares, compared to its average volume of 30,804,580. Alphabet has a 1 year low of $270.70 and a 1 year high of $408.61. 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 stock has a market cap of $3.45 trillion, a price-to-earnings ratio of 14.21, a PEG ratio of 0.92 and a beta of 1.21. The business's fifty day moving average is $341.50 and its two-hundred day moving average is $340.66.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The information services provider reported $2.12 EPS for the quarter, missing analysts' consensus estimates of $3.02 by ($0.90). The firm had revenue of $127.58 billion for the quarter, compared to analyst estimates of $127.96 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. Analysts anticipate that Alphabet will post 20.60 EPS for the current fiscal year.

Insider Buying and Selling at Alphabet

In other Alphabet news, Director Frances Arnold sold 83 shares of the firm's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $340.45, for a total value of $28,257.35. Following the transaction, the director owned 19,076 shares in the company, valued at approximately $6,494,424.20. This trade represents a 0.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 11.61% of the stock is currently owned by company insiders.

Institutional Trading of Alphabet

Several large investors have recently added to or reduced their stakes in GOOGL. Strategic Wealth Advisors LLC raised its position in shares of Alphabet by 6.0% during the 1st quarter. Strategic Wealth Advisors LLC now owns 477 shares of the information services provider's stock valued at $137,000 after buying an additional 27 shares in the last quarter. Rockbridge Investment Management LCC grew its position in Alphabet by 0.5% in the first quarter. Rockbridge Investment Management LCC now owns 5,460 shares of the information services provider's stock worth $1,570,000 after acquiring an additional 27 shares in the last quarter. Ruggaard & Associates LLC grew its position in Alphabet by 0.9% in the first quarter. Ruggaard & Associates LLC now owns 2,921 shares of the information services provider's stock worth $840,000 after acquiring an additional 27 shares in the last quarter. Cadia Private Client LLC increased its stake in Alphabet by 1.1% during the first quarter. Cadia Private Client LLC now owns 2,589 shares of the information services provider's stock worth $744,000 after acquiring an additional 28 shares during the last quarter. Finally, Evansbrook LLC increased its stake in Alphabet by 0.3% during the first quarter. Evansbrook LLC now owns 9,522 shares of the information services provider's stock worth $2,738,000 after acquiring an additional 28 shares during the last quarter. 40.03% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud delivered exceptional growth. Cloud revenue more than doubled year over year to approximately $31 billion, while cloud profit roughly tripled. The results suggest strong demand for Alphabet’s AI infrastructure and services. Alphabet's heavy cloud spending drives bigger-than-expected cash burn
• Positive Sentiment: Alphabet is expanding its AI opportunity. OpenAI reportedly plans to use Google’s internally developed TPU chips, and Alphabet is making those chips available to outside customers through cloud partners. This could create a new revenue stream and reduce reliance on Nvidia hardware. Google alters cloud playbook, enlisting partners to sell more AI chips
• Neutral Sentiment: Analysts remain divided. Several firms lowered price targets following the report, although many retained Buy or Outperform ratings. Guggenheim and Needham maintained $450 targets, while DA Davidson downgraded the stock to Neutral with a $300 target. What analysts are saying about Alphabet after earnings
• Negative Sentiment: Alphabet missed quarterly expectations. Adjusted earnings were $2.12 per share versus consensus of roughly $3.02, while revenue of $127.58 billion was slightly below forecasts. Net income also fell year over year, partly reflecting an unrealized loss on Alphabet’s SpaceX investment and an EU antitrust fine. Alphabet earnings miss reflects first real sign that AI is taking a bite out of search
• Negative Sentiment: AI investment is weighing heavily on cash flow. Alphabet spent roughly $9 billion more cash than it generated during the quarter as it expanded data-center capacity and funded AI development. Investors are concerned that returns on this spending may take longer to materialize than expected. Alphabet falls 10% in premarket, putting it on course for its biggest ever post-earnings drop
• Negative Sentiment: Search and advertising trends raised the central concern. Search revenue grew but missed estimates for a second consecutive quarter, while YouTube advertising revenue also fell short. Investors fear AI-generated answers and agents could shift usage toward lower-monetized formats; Alphabet has acknowledged that AI search currently generates less revenue per query than conventional search. Google is set for a $400 billion stock wipeout after disappointing earnings
• Negative Sentiment: Additional legal and regulatory risks add pressure. Alphabet faces new investor securities lawsuits related to alleged disclosures about Gemini development, while South Korea fined Google over app-store practices and Finland opened an environmental investigation involving a planned data center. Alphabet investor class action lawsuit

Alphabet Company Profile

Alphabet Inc is a technology holding company best known for its Google subsidiary. Google operates a global internet-services business centered on online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a broad range of cloud-based productivity and collaboration tools.

Google Cloud provides infrastructure, data analytics, cybersecurity, artificial intelligence, and enterprise software services to businesses, governments, and other organizations. Alphabet also develops consumer hardware, including Pixel devices and products for connected homes, while investing in emerging businesses through its “Other Bets” segment, including autonomous transportation and life sciences initiatives.

Alphabet was established in 2015 as part of a corporate restructuring that made Google a subsidiary and provided a separate structure for its expanding portfolio of businesses.

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