Alphabet shares are up 21% over the past year through Monday's close, but flat for 2026 and 22% below their May high. Earlier gains came from Gemini 3 and strong Google Cloud growth, but since June the company has raised $49.6 billion from new stock and bought back no stock in the first half of 2026. Second-quarter revenue rose 24% to $119.8 billion and Cloud grew 82%, yet 2026 capex guidance was raised to $195 billion to $205 billion and free cash flow was negative $5.9 billion, and the stock fell 7% the next day. The stock trades near 23 times forward earnings, in line with its five-year average, while analysts expect normalized EPS to grow about 24% a year through 2028. The author says the selloff may have gone too far but would wait for third-quarter results on Oct. 28 before adding more.
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/26/2026 | 316.80 |
| Change that session | -1.06% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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