Alphabet Stock Is Up 26.5% Over the Past Year. Still a Buy at $320?
Yahoo Finance ·
Alphabet shares have advanced 26.5% over the past year to close at $320.21, though the equity trades 20.5% below its record peak of $402.62 set on May 13. The downward pressure followed an $80 billion equity plan announced in June and a revised 2026 capital expenditure guidance of $195 billion to $205 billion. Wall Street analysts maintain a positive outlook, anticipating revenues to expand from $500.14 billion in 2026 to $626.82 billion in 2027. Investors await the upcoming third-quarter financial results scheduled for Wednesday, October 28, to gauge the momentum of AI-driven cloud growth and capital spending efficiency.
AI 시장 분석
Alphabet (GOOGL) shares rose 26.5% over the past year, but recorded $320.21, down 20.5% from the May peak of $402.62. A $80 billion capital increase for massive AI infrastructure investment and an upward revision of the 2026 capex guidance ($195 billion to $205 billion) triggered the stock correction. Analysts continue to project revenue growth for 2026 and 2027 ahead of the Q3 earnings release on October 28.
상승 영향
- AI — Google Cloud revenue surged 82% and the AI server investment payback period was shortened to less than 2 years, confirming long-term growth drivers.
하락 영향
- Growth Stocks — Big tech companies such as Alphabet and Meta substantially raised their AI capex outlooks, increasing concerns over short-term cash flow deterioration and rising costs.
DYAX 전담 분석
Alphabet reported Q2 revenue of $11.98 billion and 82% growth in Google Cloud, but the stock faced pressure as aggressive AI capital expenditure expansion and the announcement of an $80 billion capital increase turned short-term free cash flow negative. Subsequent capital expenditure announcements by big tech companies like Meta also fueled market concerns over cost burdens, contributing to the downward trend in the stock.
The bullish scenario is when Google Cloud's high growth and the shortened AI server investment payback period (less than 2 years) are proven through earnings, while the bearish scenario is when excessive capital expenditures continuously worsen cash flow. Key metrics to watch are cloud order backlogs and actual cash flow trends in the Q3 earnings release.
AI가 생성한 분석으로 투자 자문이 아닙니다.
DYAX Investor Sentiment
Bullish (Long) 36% · Bearish (Short) 64%
422 participants
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