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Alphabet shares drop 14% post-Q3 but AI-driven growth and capex investments signal strong long-term value.

Analyst Insights
05 Nov 2026, 18:28 WIB
Seeking Alpha
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Bullish
Alphabet shares drop 14% post-Q3 but AI-driven growth and capex investments signal strong long-term value.

Alphabet's shares fell 14% after Q3 earnings due to market concerns over slowing Search growth and high capital expenditures. However, the company's shift to AI-driven search is boosting user engagement, and monetization is expected to improve in upcoming quarters. Despite current negative free cash flow from record capex, Alphabet's strategic investments in computing power and proprietary technology position it for strong long-term returns. The stock trades below 19 times estimated 2027 earnings with a fair value target of $375, anticipating mid-20% earnings growth as capital spending normalizes.

Alphabet's market cap stands at $3.54 trillion as of Nov 05, 2026 23:41 WIB, reflecting its massive scale despite recent share price declines. On Pluang, GOOG trades at $283.08 with a 1-day change of -1.47%, showing some investor caution. The stock's dividend yield remains low at 0.31%, and trading volume is active at over 31 million shares, indicating ongoing interest in the media giant amid its strategic shifts.

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