A Wall Street analyst has confirmed their opinion Letters (NASDAQ: GOOGLE), which has seen positive trends in recent quarters.
In particular, Evercore ISI analyst Mark Mahaney has provided property target of $400 while still maintaining ‘Outperformers’.
The new price represents a 16% upside for GOOGL stock from its last close of $342. In particular, in the past month, Alphabet stock rose 18%.
Analyst calls reflect expectations for a long-term stabilization, pointing to a weaker fiscal hit in the first quarter.
The outlook rests on steady demand for Alphabet’s largest businesses. Search remains a key driver, with ad spend showing signs of accelerating and supporting steady revenue expectations.
At the same time, Mahaney said that the cloud division continues to show strength, which is shown by the increasing number of indicators, which shows the importance of the industry despite the many challenges.
However, the bigger picture is complicated. According to the survey, YouTube’s performance appears to be mixed, with signs of slowing as the platform moves through the transition to monetization.
Also, increase money in artificial intelligence infrastructure and data centers are expected to weigh on margins, as higher operating costs offset part of the top line growth.
Google stock’s run
The sentiment comes as GOOGL stock has grown over the past year, led by significant growth in Google Cloud and AI-powered Search and YouTube. The recent gains followed new AI launches, with optimism surrounding Gemini adoption and rising cloud prices.
Investors are now focusing on Alphabet’s Q1 2026 earnings, due April 29. Wall Street expects revenue of $106 billion to $107 billion, up about 18% to 20% year over year, and adjusted EPS of $2.62.
Key areas to watch include the growth of Google Cloud, following a nearly 48% jump in Q4 2025, and advances in AI investment.
Another big topic is Alphabet’s 2026 plan for $175 billion, focused on AI servers, data centers, and networks.
Although this may push the limits and the free flow of money in the short term, many experts consider it very important to have a long-term leadership in AI products.
CEO Sundar Photosi pointed to AI as a key driver of growth, pointing to increased use of Search and cloud computing that has doubled to $240 billion.
