With a market cap of around $3.5 trillion, Alphabet Inc. (GOOG) is a global technology conglomerate best known as the parent company of Google. The California-based company’s diverse portfolio spans internet search, digital advertising, cloud computing, artificial intelligence, and consumer technology.
Shares of this tech giant have failed to keep up with the broader market over the past year. GOOG has dropped 1.3% over this time frame, while the S&P 500 Index ($SPX) has rallied 11.1%. In 2026, GOOG dipped 11.3%, compared to SPX’s 10.7% rise on a YTD basis.
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Narrowing the focus, GOOG has surpassed the State Street Communication Services Select Sector SPDR ETF (XLC). The exchange-traded fund has fallen 12.6% over the past year and 15.1% on a YTD basis.
www.barchart.com On Oct. 28, Alphabet reported a mixed third-quarter performance for 2026, with strong revenue growth and an exceptional performance from Google Cloud, but weaker-than-expected earnings and mounting AI-related expenses. Revenue jumped 24.7% year over year to $127.58 billion, although it fell slightly short of analysts' expectations.
Google Cloud was the standout performer, with revenue surging 102.6% to $30.71 billion, driven by strong demand for AI infrastructure, enterprise AI solutions, and TPU systems. Operating income climbed 29.9% to $40.6 billion, but net income declined 25.2% to $26.2 billion, partly due to investment-related losses, and EPS fell to $2.12 from $2.87 a year earlier. Its shares tanked 12.3% in the next trading session.
Additionally, Alphabet is facing a securities fraud class action lawsuit alleging that the company and certain senior executives misrepresented the development progress of its Gemini 3.5 Pro AI model. The complaint follows a July 16, 2026, Bloomberg report that the flagship AI model was months behind schedule, triggering a 4.4% drop in Alphabet's shares. Filed in the U.S. District Court for the Northern District of California, the lawsuit seeks to represent affected investors, who have until Dec. 1, 2026, to apply for lead plaintiff status.
For the fiscal year ending in December 2026, analysts expect GOOG’s EPS to grow 88.7% to $20.40 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in three of the last four quarters, while missing on another occasion.
Among the 53 analysts covering GOOG, the consensus is a “Strong Buy.” That’s based on 45 “Strong Buy” ratings, three “Moderate Buys,” and five “Holds.”
www.barchart.com This configuration is more bearish than two months ago, when there were 46 “Strong Buy” ratings.
JPMorgan maintained an “Overweight” rating on Alphabet but sharply lowered its price target to $375 from $425 on Oct. 29, 2026, an 11.8% reduction.
The mean price target of $404.69 represents a 46.1% premium to GOOG’s current price levels. The Street-high price target of $515 suggests a notable upside potential of 85.1%.
On the date of publication, Kritika Sarmah did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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