"GOOGL has rallied sharply, with shares up 9.39% in the past week, 29.58% over one month, and 134.45% over the past year. The catalyst was a blowout Q1 FY2026 report on April 29, 2026: revenue of $109.896 billion (up 21.79% YoY) and EPS of $5.11 against a $2.63 consensus, a 94.1% beat."
"Cloud is accelerating quarter over quarter, and the $460 billion backlog gives multi-year revenue visibility. Gemini is processing more than 16 billion tokens per minute via API, up 60% from the prior quarter, while paid subscriptions reached 350 million."
"The bear case centers on capital intensity. Q1 CapEx of $35.674 billion more than doubled YoY, dragging free cash flow down 46.63% to $10.116 billion. Full-year 2026 CapEx guidance of $175 billion to $185 billion is substantial."
Google's stock has shown significant growth, with a 134.45% increase over the past year. The recent Q1 FY2026 report revealed a revenue of $109.896 billion, surpassing expectations. Google Cloud revenue surged by 63%, and the backlog reached over $460 billion. Despite concerns over high capital expenditures, the company's investments in AI and cloud infrastructure are expected to drive future growth. The price target for GOOGL is set at $502.88, with a potential bull-case scenario of $576.54 by May 2027.
Read at 24/7 Wall St.
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