UBS cut its price target on Alphabet to $332 from $380 but kept a 'neutral' rating, citing weaker advertising growth and concerns over cloud margins. The shares fell 13% on Thursday after third-quarter revenue came in below expectations, with Search at $63.4 billion against a consensus of $64.9 billion and YouTube at $11.2 billion against $11.4 billion. UBS lowered its 2026 Search revenue forecast to $257.1 billion from $260.8 billion and its YouTube ad estimate to $44.4 billion from $45.4 billion, reflecting management's measured approach to revenue from additional AI queries. Cloud revenue beat market expectations but missed UBS's estimates, while backlog reached $561 billion, above the broker's $538 billion forecast. UBS raised its 2027 diluted EPS forecast to $21.03 from $19.11 but cut its 2028 forecast to $11.49 from $13.75.
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GOOGLvaluationearningsadvertising
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/29/2026 | 283.75 |
| Change that session | -12.66% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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