--- title: "Alphabet Stock Fell 7% after Earnings. Is It Time to Buy GOOGL?" type: "News" locale: "en" url: "https://longbridge.com/en/news/293756386.md" description: "Alphabet (GOOGL) stock fell 7% after earnings due to raised 2026 capital spending forecasts, despite strong Q2 results including an 82% jump in Google Cloud revenue. Freedom Broker analyst Saken Ismailov upgraded the stock from Hold to Buy with a $400 price target, viewing the drop as an attractive entry point. TipRanks shows a Strong Buy consensus with an average price target of $427.35." datetime: "2026-07-24T12:11:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293756386.md) - [en](https://longbridge.com/en/news/293756386.md) - [zh-HK](https://longbridge.com/zh-HK/news/293756386.md) --- # Alphabet Stock Fell 7% after Earnings. Is It Time to Buy GOOGL? Alphabet (GOOGL) stock inched higher in Friday's pre-market trading after falling about 7% on Thursday. The post-earnings drop came even though the Google parent reported strong Q2 results, helped by an 82% jump in Google Cloud revenue. Investors instead focused on the company's higher spending plans, with Alphabet raising its 2026 capital spending forecast to between $195 billion and $205 billion. ### Claim 55% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks Following the sell-off, Freedom Broker analyst Saken Ismailov upgraded GOOGL stock from Hold to Buy with a $400 price target. He believes the recent drop has made the stock more attractive, even as Alphabet faces higher costs from its AI push. ## **Why Did Freedom Broker Upgrade GOOGL Stock?** Ismailov sees several reasons to remain positive after Alphabet's Q2 results. Google Cloud revenue jumped 82% year-over-year, while the ad business also remained strong. He believes these results show that Google Search remains healthy and that Alphabet is starting to earn more from AI. However, higher spending remains a concern. Alphabet raised its 2026 capital spending forecast by $15 billion to between $195 billion and $205 billion. This could put pressure on profit margins and cash flow as the company spends more on AI infrastructure. Even so, Ismailov raised his revenue forecasts for 2026 and 2027. He believes stronger growth can help offset some of the pressure from higher costs. More importantly, after GOOGL stock's recent drop, he sees the current price as a better entry point. This led him to upgrade the stock from Hold to Buy while keeping his $400 price target. ## **Is GOOGL Stock Worth Buying?** On TipRanks, GOOGL has a Strong Buy consensus rating based on 31 Buys and five Hold ratings. The average Alphabet price target of $427.35 implies nearly 35% upside potential from current levels. ### Related Stocks - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GGLS.US](https://longbridge.com/en/quote/GGLS.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [GOOY.US](https://longbridge.com/en/quote/GOOY.US.md) - [GOU.US](https://longbridge.com/en/quote/GOU.US.md) - [GOOX.US](https://longbridge.com/en/quote/GOOX.US.md) - [GOOP.US](https://longbridge.com/en/quote/GOOP.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) ## Related News & Research - [Alphabet Inc. $GOOGL Stock Position Cut by Maj Invest Holding A S](https://longbridge.com/en/news/296018356.md) - [Avior Wealth Management LLC Decreases Stake in Alphabet Inc. $GOOGL](https://longbridge.com/en/news/295757955.md) - [GOOGL Stock Alert: Google Unleashes Its Biggest Weapon Against Apple](https://longbridge.com/en/news/295964022.md) - [Bright Rock Capital Management LLC Sells 27,000 Shares of Alphabet Inc. $GOOGL](https://longbridge.com/en/news/296016429.md) - [Alphabet Names New Head Of DeepMind A.I. Unit](https://longbridge.com/en/news/295675310.md)