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Alphabet stays a Buy with $399 target amid strong AI moat and 63% Google Cloud growth in Q1

Analyst Insights
10 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Alphabet remains a Buy with a $399 price target due to its strong AI capabilities and resilient profit margins. Despite some recent departures from its DeepMind AI division, these are seen as temporary setbacks rather than long-term risks. Google Cloud revenue surged 63% year-over-year to $20 billion in Q1, with a backlog doubling to $460 billion, showing strong demand and execution. Capital expenditure is expected to rise to $180–190 billion for fiscal 2026, supported by an $84.75 billion equity raise, with investors advised to watch for adoption of the Gemini AI model and continued cloud growth after Q2.

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