In brief – Bank of America reiterates a “buy” on Alphabet with a $430 target—10.9% upside from $387.66. – The analysts cite AI Overviews at 2.5 billion users, AI Mode at 1 billion, and Gemini doubling from 400 million to 900 million monthly active users in a year. – The report…
s some nuance: the stock fell 2% on I/O day, free cash flow is projected to drop ~$29 billion in 2026 due to a capex surge, and BofA openly questions whether AI query monetization will “materially exceed” traditional search. Google had a great I/O
Then its stock fell 2%. Bank of America still says buy. BofA analysts Justin Post and Nitin Bansal published their note on May 20 with a maintained “buy” rating and a $430 price objective on Alphabet—10.9% upside from its current price of $387.66.
Their verdict: “Google no longer playing catch up, search & agentic announcements demonstrated a wave of leading product innovation.” The bull case runs on three user metrics from Google’s own I/O disclosures. AI Overviews—the AI summaries at the top of Search results—now has 2.5 billion users. AI Mode, the conversational layer of Search, has 1 billion and is doubling every quarter.