Google parent Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) stock traded slightly higher on Thursday as buyers keep leaning into the longer-term uptrend even while mega-cap tech is choppy.
The Nasdaq is down 0.92% while the S&P 500 has shed 0.12%.
• Alphabet stock is trading at elevated levels. What should traders watch with GOOG?
BofA Securities analyst Justin Post expects Alphabet to deliver a strong second quarter, driven by cloud momentum, steady search growth and AI-related upside.
Cloud Growth Drives Forecast
Post maintained a Buy rating on Alphabet with a $430 price forecast. He expects second-quarter revenue of $102.1 billion and GAAP EPS of $8.38, above Street estimates of $101 billion and $2.90.
The analyst projects third-quarter revenue of $108.8 billion and GAAP EPS of $3.03, above Street estimates of $107.9 billion and $3.02.
Post raised his Cloud growth estimate to 70%, citing strong demand indicators and backlog that suggests at least $230 billion in revenue over the next eight quarters. He also expects full-year 2026 search growth of 16% and Cloud growth of 72%.
AI Assets Support Upside
Post raised his 2026 net revenue estimate by 1% to $427 billion and lifted his EPS estimate by 36% to $19.70. For 2027, he raised net revenue by 3% to $537 billion and EPS by 1% to $14.70.
Post said Alphabet remains well positioned for outsized growth and Cloud margin upside because of its AI assets across models, silicon, consumer distribution and enterprise distribution. He also flagged second-quarter search growth, cloud margins, backlog and capital spending commentary as key items for the earnings call.
Technical Analysis
GOOG is trading 15.7% above its 200-day SMA and 8.4% above its 100-day SMA, which keeps the bigger-picture trend pointed up after a 101.85% run over the past 12 months. The stock is also 4.3% above its 20-day SMA, but only 0.5% above its 50-day SMA — so the near-term tape is tighter and more sensitive to pullbacks.
Top ETF Exposure
- Fidelity MSCI Communication Services Index ETF (NYSE:FCOM): 8.66% Weight
- Invesco Nasdaq Internet ETF (NASDAQ:PNQI): 9.93% Weight
- NYLI Winslow Large Cap Growth ETF (NYSE:IWLG): 9.99% Weight
Significance: Because GOOG carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
GOOG Price Action
GOOG Stock Price Activity: Alphabet shares were up 0.23% at $371.03 at the time of publication on Thursday, according to Benzinga Pro data.
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