Canaccord Genuity Raises Alphabet Price Target to $415
Canaccord Genuity analyst Maria Ripps raised the price target on Alphabet (NASDAQ: GOOGL) to $415.00 (from $390.00) while maintaining a Buy rating.
“Google reported strong Q4 results, with total revenue coming in ~2% ahead of expectations amid continued Search momentum and a standout quarter for Cloud.
Advertising revenue was ahead of consensus as AI continues to meaningfully improve the search experience, with Gemini 3 enabling better understanding of queries, more helpful responses, and longer, more complex sessions.
The Gemini app saw an “extraordinary period of growth in Q4” and now has over 750M MAUs, with engagement also strengthening.
Cloud meaningfully surpassed expectations as growth accelerated a striking 14 ppts q/q, with backlog growing 55% q/q to $240B, reflecting robust demand for Google’s TPUs and enterprise AI products, with Gemini Enterprise capturing more than 8M paid seats as of Q4 despite having just been launched four months ago.
The pace of Cloud deals is showing no signs of slowing, with Google exiting the year with double the new customer velocity compared to Q1, and existing customers are outpacing their initial commitments by over 30%.
To capitalize on this momentum, Google guided to a step-change increase in FY26 CapEx to $175-185B, roughly double the prior year’s investment.
In our view, a commitment of this magnitude reflects Google’s strong conviction in the scale of the AI opportunity, though the size of the investment appears to be tempering the stock’s after-hours reaction.
That said, accelerating Search momentum, a rapidly expanding Cloud backlog, and tangible Gemini adoption suggest that Google is successfully leading the transition to an AI-native economy, and this print further reinforces our view that the stock should be a core holding in large-cap tech portfolios.”
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