Quick Read – GOOGL dropped 4% on Gemini delay fears, but a 94% EPS beat and a $515 outlier price target suggest the selloff is overdone. – MSFT rose while GOOGL fell 4%, yet Microsoft holds the largest analyst-implied upside at 39% among mega-cap AI peers despite the worst YTD…
rformance. – Alphabet shares currently trade at $354.46 while Wall Street’s consensus analyst price target sits at $431.72, a gap of roughly 21.8% between current price and fair value. Alphabet (NASDAQ:GOOGL) is the parent of Google Search, YouTube, Google Cloud, Waymo, and the Gemini family of AI models
Wall Street focuses on whether Search can defend itself against generative AI and whether Google Cloud can monetize a $460 billion backlog fast enough to justify a $175 to $185 billion 2026 capex bill. Alphabet just delivered its strongest quarter in years, yet the stock trades below where nearly every covering analyst thinks fair value sits. One outlier bull has a $515 target that would imply roughly 45% upside from here.
The Selloff That Reopened the AI Brain Drain Debate GOOGL fell 4.44% in the most recent session, closing at $354.46 after opening near $373. The trigger was a report that Google’s Gemini 3.5 Pro model is running months behind schedule, reviving concerns that top AI talent has slipped to Anthropic, OpenAI, and xAI. Two departures fuel the narrative: Gemini co-lead Noam Shazeer returning to OpenAI after briefly rejoining Google via the Character.ai deal, and Nobel laureate John Jumper leaving DeepMind for Anthropic.