A year ago, we wrote that Alphabet was well on its way to reaching its $225 price target. That level was achieved well ahead of schedule at the time, and since then, the stock price has been on an impressive run. Alphabet has thus demonstrated once again that demand for AI and cloud services continues to exceed expectations. It’s time to take stock, discuss this year’s developments, and determine the technical and fundamental outlook for the coming period.
Read our article from July 24, 2025, here: "Alphabet: On the road to price target!"”
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What are the developments at Alphabet in 2026?
Alphabet got off to a strong financial start this year. In the first quarter, revenue rose 22% to $109.9 billion, and operating profit increased 30% to $39.7 billion. Google Cloud stood out in particular: revenue there grew by 63% to $20.0 billion, with an order book that has now reached approximately $462 billion.
AI services such as Gemini and the new “agent-based AI” features in Search are also being widely embraced, with AI Mode now reaching over 1 billion users per month.
That growth comes at a price. Alphabet raised its projected capital expenditures for this year to $180 to $190 billion and also plans to raise $80 billion in additional capital, partly through Berkshire Hathaway. The market is not entirely enthusiastic about this: major tech stocks collectively lost approximately $2.3 trillion in value in June, as investors wonder when all that capital will pay off.
Alphabet is also making strides in other areas. In March, Google acquired cloud security firm Wiz, strengthening its competitive position against Microsoft and Amazon in the cloud market. Waymo, Google’s self-driving taxi service, is also continuing to grow: it now completes more than 500,000 driverless rides per week across eleven U.S. cities. One piece of positive news was Alphabet’s inclusion in the Dow Jones index at the end of June, replacing Verizon.
What is the analysts’ outlook on Alphabet’s stock price?
Analysts remain overwhelmingly positive about Alphabet. A large majority maintain a “Strong Buy” rating, and there are no “Sell” recommendations.
The average 12-month price target is around $430, compared to a current price of approximately $358, implying upside potential of over 20%. The main arguments in favor are cloud growth, the early-stage revenue model of AI, and continued dominance in digital advertising. The downside cited by analysts is the risk of high capital expenditures and increasing competition from Microsoft and Meta.
What is Yelza’s outlook on Alphabet’s stock price?
Below you’ll find Alphabet’s stock price chart starting in 2023. The arrows show the most likely scenario at a glance.
The chart shows that Alphabet is still moving within a clear uptrend. From the current price of approximately $358, the next key target zone is around $460. In our analysis, this level is considered a logical intermediate target in the current uptrend.
When the price reaches this zone around $460, we expect a temporary correction. This does not mean that the positive long-term outlook will change immediately, but it does mean that after a strong rally, the price will likely need to consolidate first. The chart shows that a pullback toward the broad support zone between $350 and $300 would then be a logical next scenario.
Such a move would fit within a healthy technical pattern: first, a further rise toward resistance, followed by a corrective phase in which profit-taking occurs and the price returns to a stronger foundation. As long as the price manages to stay above the support zone around $300 during that phase, the broader upside scenario remains intact. After this potential corrective phase, our model expects the structural uptrend to resume. The long-term price target is set at $675.
Conclusion
Alphabet is demonstrating that its substantial AI investments are actually starting to pay off, with Google Cloud standing out as a notable star performer. At the same time, the stock price has risen sharply over the past year, and according to our model, the stock is approaching the first key resistance level around $460.
For investors who already hold a position in Alphabet, it may be worth continuing to monitor the current trend toward the $460 range. Around that level, investors may then consider partially reducing their position, especially if the stock shows signs of exhaustion there. In the event of a correction toward the support zone between $350 and $300, investors can then gradually consider building or expanding their position again.
For investors who do not yet hold a position, an initial entry at current levels could be considered to capitalize on the move toward $460. However, it remains important to account for the scenario in which the price first corrects after reaching this zone.
The longer-term outlook remains constructive. As long as Alphabet manages to stay above the broad support zone around $300, the upside scenario remains intact. Following a potential correction phase, our algorithm targets a long-term price target of $675.
Alphabet is expected to release its second-quarter earnings after the market closes on July 22, 2026.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences. They are therefore intended for educational purposes only.