Cantor Fitzgerald Lowers Alphabet Price Target to $420

Cantor Fitzgerald analyst Deepak Mathivanan lowered the price target on Alphabet (NASDAQ: GOOGL) to $420 (from $435) while maintaining an Overweight rating.

“GOOGL reported solid 2Q results with GCP exceeding Street estimates by 10% while Search came in-line (Visible Alpha).

On profitability, operating margin expanded 160bps y/y despite some headwinds in services (likely due to legal costs).

Additionally, GOOGL revised FY26E capex higher by $15B to $195-$205B due to an acceleration in the delivery of capacity, while reaffirming a “significant increase” for FY27E.

On the call, the company highlighted several areas where AI integrations drove strong growth once again in 2Q. Notably – AI mode in search has 1B+ users, while Gemini MAUs increased to 950m (vs.

900m in May / 750m in Feb). On GCP, new customer acquisition velocity doubled, while existing customers are exceeding commitments by >50%.

Lastly, GOOGL noted that the company is committed to reach the frontier in LLMs with a large pre-training run for Gemini 4 currently underway.

Overall, 2Q was a strong quarter for GOOGL. Shares are trading down 3% AMC (vs. Nasdaq futures ~flat) due to the increase in FY26E capex and limited upside on 2Q EBIT.

That said, we believe that the fundamental outlook for GOOGL in 2H26E remains strong.

We have increased our FY27E revenues and EBIT by 5% and 2%, respectively, and our new PT of $420 is now based on 28x FY27E EPS (vs. $435 and 32x FY26E/FY27E previously).

We reiterate our Overweight / Top Pick rating on GOOGL shares post 2Q results.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.