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Alphabet upgraded to Buy after Q3 earnings drop brings valuation closer to fair value despite risks.

Analyst Insights
29 Oct 2026, 15:30 WIB
Seeking Alpha
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Bullish
Alphabet upgraded to Buy after Q3 earnings drop brings valuation closer to fair value despite risks.

Alphabet's stock fell sharply after Q3 2026 results showed revenue up 25% to $127.6B but earnings per share down 26% to $2.12, with negative free cash flow of $9.1B. Cloud revenue doubled but concerns over customer concentration and transparency, especially regarding Anthropic and SpaceX, raise sustainability questions. Rising capital expenditures and volatile equity stakes add risk, but the current lower stock price reflects much of this, offering potential upside for investors. The upgrade to Buy suggests confidence that the stock is undervalued despite these challenges.

Alphabet's stock price on Pluang dropped 11.50% to USD 284.88 as of Oct 29, 2026 19:42 WIB, nearing its 52-week low of USD 273.14 and well below the 52-week high of USD 399.06. Despite the sharp fall, the stock still attracts buying interest with 77% of Pluang orders being buys. The typical hold time of 139 days suggests investors are taking a medium-term view amid the recent volatility.

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