Bernstein SocGen Reduces Alphabet Price Target to $385
Bernstein SocGen Group analyst Mark Shmulik lowered the price target on Alphabet (NASDAQ: GOOGL) to $385 (from $390) while maintaining a Market Perform rating.
“If you hate Google here, eat something. If you feel like Google hates you, go to bed”. You don’t like this print from Google?
Sell-side estimates will probably go up with in-line search, a massive beat in cloud, and modest beats on operating margins and EPS ex-mark to markets.
You think Google’s not giving the answers you need around model progress and AI ROIC?
Google’s multiple probably compresses as search comps also get tougher, cloud margins compress, and Google’s gone negative FCF for the first time.
But get some sleep, and we can weave a new story tomorrow.
CAPEX goes up, FCF goes down. 2026 Capex guide went up to $195-205B as expected, while Google had it’s first negative FCF quarter.
Spend too much you get dinged, don’t spend enough you fall behind… and get dinged. Google has to defend search, compete at the frontier, and win over enterprise on AI cloud. No easy task indeed.
Investment Implications Going to bed but warming to the stock. Maintain Market-Perform, PT $385 (-$5).”
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