Optimism Grows for Software Stocks, Yet It's Premature to Declare a Bottom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Should l Buy GOOGL?
Source: Barron's
Nvidia's Earnings Report: Nvidia reported its fiscal fourth-quarter earnings, showcasing strong performance in the artificial intelligence chip market.
Analyst Reactions: Following the earnings report, analysts expressed positive sentiments, highlighting the company's continued success and growth potential.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 385.690
Low
305.00
Averages
374.25
High
400.00
Current: 385.690
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cloud Backlog Surge: CEO Sundar Pichai highlighted that Google Cloud's backlog nearly doubled quarter-over-quarter to over $460 billion, signaling robust growth potential for the cloud business over the coming years.
- New Revenue Stream: Alphabet plans to sell its eighth-generation TPUs to select customers for AI training and inference, a strategic move that not only expands its market opportunities but also poses a challenge to Nvidia's dominance in the AI chip market, enhancing the company's competitive edge.
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- Tech Ecosystem Development: The increasing number of Chinese companies going public in Hong Kong is fueling financing for domestic startups, fostering the growth of China's tech ecosystem and attracting global investor interest.
- Shift in Entrepreneurial Mindset: Chinese entrepreneurs are becoming more open to selling their businesses or engaging in M&A, providing investors with more opportunities to profit and further expanding the industry's scale.
See More
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- Collaboration Opportunities: Nvidia's Ising model will provide an open-source and AI-powered platform for quantum computing, with IonQ and Rigetti actively partnering with Nvidia, enhancing their technological capabilities and potentially accelerating the adoption of quantum computing.
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See More
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- Market Growth Potential: According to Grand View Research, the global AI market is projected to expand at a 30.6% CAGR from 2026 to 2033, driving widespread adoption of generative and agentic AI solutions by enterprises, which will significantly boost revenues for related companies.
- Broadcom's Market Performance: Broadcom's AI chip sales surged 65% to $20 billion in fiscal 2025, accounting for 31% of its total revenue, with expectations to soar to $60-$90 billion by fiscal 2027, further solidifying its market position in the AI sector.
- Alphabet's Competitive Edge: As one of the few tech giants capable of owning and monetizing AI globally, Alphabet leverages its vast ecosystem—including Google Search and YouTube—to rapidly deploy AI services, enhancing the efficiency of its advertising and cloud services, thus ensuring sustained growth of its core business.
- Future Growth Expectations: Analysts anticipate that from 2025 to 2028, Broadcom and Alphabet will see their revenues and adjusted EBITDA grow at CAGRs of 47% and 46%, respectively, indicating that the robust expansion of the AI market will provide long-term profit potential for both companies.
See More
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- Significant User Growth: The global monthly active users increased by 11% year-over-year to 631 million, aligning with analyst estimates, suggesting a growing user base that will support future advertising revenue growth.
- Strong EBIDTA Performance: The adjusted EBIDTA for Q1 was $207 million, exceeding the $176 million expected by analysts, reflecting improvements in cost control and operational efficiency, which bolstered investor confidence.
- Strategic Acquisition Execution: Pinterest completed its acquisition of tvScientific for approximately $465.1 million, aimed at enhancing its capabilities in connected TV advertising analytics, thereby improving ad effectiveness and strengthening market competitiveness.
See More
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- Strong Earnings Beat: Pinterest's Q1 adjusted earnings per share reached 27 cents, surpassing the 23 cents expected by analysts, with revenue hitting $1.01 billion, exceeding the $966 million forecast, indicating robust market performance.
- Significant User Growth: The company reported an 11% year-over-year increase in global monthly active users to 631 million, aligning with analyst estimates, demonstrating ongoing improvements in user engagement and market penetration.
- Optimistic Future Guidance: Pinterest anticipates Q2 revenue between $1.13 billion and $1.15 billion, higher than Wall Street's $1.11 billion projection, while EBIDTA is expected to range from $256 million to $276 million, reflecting strong profitability prospects.
- Strategic Transformation: The company plans to cut nearly 15% of its workforce and reduce office space to allocate more resources to artificial intelligence, aiming to enhance operational efficiency and competitive positioning, highlighting its commitment to future technological advancements.
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