Alphabet Reports Double-Digit Growth, Market Cap Reaches $3.8 Trillion

Written by Emily J. Thompson, Senior Investment Analyst

GOOGL+2.43%

AMZN+0.26%

MSFT+1.04%

Source: Fool

Updated: 1d ago

0mins

Source: Fool

Sustained Growth: Alphabet's third-quarter results showed double-digit growth across all business segments, pushing its market cap to $3.8 trillion, indicating its strong adaptability and ability to seize market opportunities in a competitive landscape.
Cloud Computing Advantage: With the rise of Agentic AI, Google Cloud is expected to become a significant winner over the next decade, further solidifying Alphabet's leadership in the cloud market and driving continued revenue growth.
Quantum Computing Outlook: Google's Quantum AI technology is poised to lead technological transformations in the next ten years, with Alphabet's investments in this area potentially yielding long-term benefits and enhancing its competitive edge.
Diversification Strategy: Despite challenges from competitors like TikTok, Alphabet's continuous innovation and diversified business model are expected to maintain its market leadership and ensure sustainable growth in the future.

GOOGL

$321.98+Infinity%1D

Analyst Views on GOOGL

Wall Street analysts forecast GOOGL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 312.00 USD with a low forecast of 236.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

38 Analyst Rating

31 Buy

7 Hold

0 Sell

Strong Buy

Current: 314.340

Low

236.00

Averages

312.00

High

350.00

Current: 314.340

Low

236.00

Averages

312.00

High

350.00

Canaccord

Maria Ripps

Buy

maintain

$330 -> $390

2026-01-07

New

Reason

Canaccord

Maria Ripps

Price Target

$330 -> $390

2026-01-07

New

maintain

Buy

Reason

Canaccord analyst Maria Ripps raised the firm's price target on Alphabet to $390 from $330 and keeps a Buy rating on the shares. The firm said said while they are more cautious in the near-term, in part due to the stock's recent run, they continue to have high conviction on the name longer-term. The Gemini chatbot continues to scale rapidly, with Similarweb data most recently finding Gemini's share of generative AI web traffic has grown to over 18%, and the recently launched Gemini 3 Flash model could be a gamechanger by making frontier-comparable performance available at an extremely attractive cost.

Jefferies

Brent Thill

Buy

maintain

$320 -> $365

2026-01-05

New

Reason

Jefferies

Brent Thill

Price Target

$320 -> $365

2026-01-05

New

maintain

Buy

Reason

Jefferies analyst Brent Thill raised the firm's price target on Alphabet to $365 from $320 and keeps a Buy rating on the shares. The firm believes 2026 will be "another year of gradual AI monetization," but thinks more meaningful growth contribution and acceleration are needed to ease AI disintermediation fears, requiring more selectivity, the analyst tells investors in an outlook note on the software group. "While we remain confident that value will ultimately accrue to the software layer, investors may need to stay patient" with sector valuation back at historical average, the analyst added.

Wolfe Research

Shweta Khajuria

Outperform

maintain

$350 -> $380

2026-01-05

New

Reason

Wolfe Research

Shweta Khajuria

Price Target

$350 -> $380

2026-01-05

New

maintain

Outperform

Reason

Wolfe Research analyst Shweta Khajuria raised the firm's price target on Alphabet to $380 from $350 and keeps an Outperform rating on the shares. 2026 could be another positive year for Internet stocks, though maybe not as much outperformance as the prior three years given current, elevated multiples for some of the firm's coverage, the analyst tells investors in a research note. The firm added that it sees opportunities for estimates upside driven by AI developments and product catalysts, a relatively healthy macro backdrop, successful capital allocation, and pockets of re-rating potential.

Citizens

Outperform

maintain

$340 -> $385

2025-12-31

Reason

Citizens

Price Target

$340 -> $385

2025-12-31

maintain

Outperform

Reason

Citizens raised the firm's price target on Alphabet (GOOGL) to $385 from $340 and keeps an Outperform rating on the shares. The firm reevaluated its estimates and Alphabet's valuation framework with the shares more than doubling off the May lows. It cites strength in the company's search business for the target boost. Google can further accelerate search revenue in Q4, which is the key question for shares near term, the analyst tells investors in a research note. Citizens views Gemini, cloud, Waymo, and tensor processing units as medium-term catalyst for Alphabet that should "help to inflect results" in 2026 and 2027.

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.