Alphabet (GOOG) shares rose 1.85% to $285.01 at 9:40 a.m. ET on November 2, after Wells Fargo cut its price target to $365 from $371 while keeping an Overweight rating. Wells Fargo attributes much of the search slowdown to AI Overviews and expects that pressure to last another two quarters. In Alphabet's October 28 results, Search and other revenue was $63.350 billion versus $30.709 billion for Cloud, and Cloud generated $11.121 billion in operating income, a 36.2% operating margin, though its revenue equals just 48.5% of Search's. The article says investors should watch Cloud's operating margin and Search's revenue growth, since holding the first while improving the second would offer stronger evidence that the AI push is boosting earnings.
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GOOGLartificial intelligencecloud computing
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 10/30/2026 | 279.76 |
| Change that session | -1.43% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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