Cantor Fitzgerald Lowers Alphabet Price Target to $350

Cantor Fitzgerald analyst Deepak Mathivanan lowered the price target on Alphabet (NASDAQ: GOOGL) to $350 (from $420) while maintaining an Overweight rating.

“GOOGL reported 3Q results with revenues in line, but EBIT came in 7% below prior street estimates.

Search revenue growth of +13% ex-FX (3-pt decel on 2-pt tougher comp) missed buyside whispers by ~1-2%.

Meanwhile, Cloud growth accelerated to >100% driven by strength in core GCP and TPU sales. On investments, GOOGL reiterated prior Capex outlook / commentary for both FY26E and FY27E.

In sum, 3Q results came in short on several KPIs.

That said, the product and engineering momentum at GOOGL remains robust. Earlier today, GOOGL launched its new Gemini Carbon model, which reached SOTA on several benchmarks.

Demand for TPUs remains strong, and GOOGL expects deliveries to ramp over the next few quarters. On search, query volumes are at a 5-year high, and the agentic transformation of search is under way.

Shares are trading down 10% AMC (vs. Nasdaq -1%) on 3Q results, but the underlying pace of innovation across the entire AI stack keeps us bullish.

We continue to believe that GOOGL is well positioned across applications, model, and infra layers in AI. At 21x FY27E EPS, we think the risk / reward is highly attractive.

We reiterate our Overweight rating and would be buyers on this weakness. Our revised PT is $350 PT (vs. $420 previously).”

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