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Alphabet upgraded to Strong Buy despite AI monetization concerns after strong Q3 revenue growth

Analyst Insights
04 Nov 2026, 11:56 WIB
Seeking Alpha
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Bullish
Alphabet upgraded to Strong Buy despite AI monetization concerns after strong Q3 revenue growth

Alphabet Inc. was upgraded to a Strong Buy rating following a sharp selloff after its Q3 FY2026 earnings report. The company posted 25% revenue growth and 30% operating income growth, but concerns remain over slower Search revenue and AI monetization lagging behind traditional Search. Alphabet's AI ecosystem, including Cloud and Gemini, offers multiple monetization opportunities, with Cloud showing strong profitability and a large backlog. Despite near-term volatility, high capital expenditures, and execution risks in AI monetization, Alphabet's valuation at 18.9 times 2027 earnings per share consensus presents a compelling risk-reward profile for investors.

Alphabet's shares are currently trading at USD 280.33 on Pluang, showing a modest 0.74% gain in the last day. As of Nov 04, 2026 17:11 WIB, the stock's market cap stands at $3.42 trillion with a typical hold time of 139 days among Pluang investors.

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