GOOG
The setup
Alphabet had a pretty normal Thursday: shares drifted a touch higher while the market wobbled, and BofA Securities showed up with a sunnier-than-average take on the Google parent. Analyst Justin Post kept his Buy rating in place and set a $430 price target, which is basically Wall Street’s version of saying, “Yeah, this thing still has room to run.”
Why he’s leaning in
Post isn’t just waving at the stock from the sidelines. He’s modeling a strong second quarter, with $102.1 billion in revenue and $8.38 in GAAP EPS, both above Street expectations. He also sees the next quarter coming in ahead of consensus, with revenue of $108.8 billion and GAAP EPS of $3.03.
The real headline, though, is cloud. Post lifted his Cloud growth estimate to 70%, citing demand and backlog that he says points to at least $230 billion in revenue over the next eight quarters. He also thinks full-year 2026 search growth can hit 16% and Cloud growth 72%, which is a pretty bold way of saying Alphabet’s AI-and-cloud combo still has juice.
What investors should watch
Post also nudged up his longer-term numbers, raising 2026 net revenue and EPS estimates, and giving 2027 a small boost too. That matters because Alphabet doesn’t trade like a random ad-tech name anymore — it’s a mega-cap battleground stock where cloud margins, search growth, backlog, and capex commentary can move sentiment fast.
- Search growth: still the cash machine everyone watches
- Cloud margins: the margin story can either get better or get awkward, fast
- AI assets: models, chips, distribution, and enterprise reach all feed the bull case
- Earnings call tone: sometimes the vibes move the stock as much as the numbers
Big picture: Alphabet is still being priced like a heavyweight, but BofA’s note says the company might be throwing punches like a younger, faster fighter.