Alphabet (GOOG) Stock Recovers as J.P. Morgan Raises Price Target to $395

Alphabet's Q4 earnings report delivered a robust performance, with revenue climbing 18% year-over-year to $113.8 billion, surpassing analyst estimates of $111.5 billion. Earnings per share stood at $2.82, outperforming the expected $2.64. Google Cloud emerged as a standout, posting a 48% revenue surge to $17.7 billion and a 30% operating margin, eclipsing Microsoft Azure's 39% growth.

The company unveiled ambitious capital expenditure plans, targeting $175-$185 billion by 2026—nearly double 2025's projected $91.5 billion spend. This aggressive investment strategy, while pressuring near-term free cash flow, underscores Alphabet's commitment to scaling its infrastructure and cloud capabilities. J.P. Morgan responded by raising its price target to $395, maintaining an Overweight rating.

Google's ecosystem continues to expand, with Gemini reaching 750 million monthly active users and Google Cloud's backlog jumping 55% quarter-over-quarter to $240 billion. Search revenue growth accelerated to 17%, signaling resilience in core advertising markets.