Alphabet Inc. (NASDAQ: GOOG, GOOGL) closed lower on Tuesday, ending the trading session at $167.71, a drop of 1.56% from the previous day.
This decline stood in contrast to the broader market performance, with the S&P 500 gaining 0.58%, the Dow Jones rising 0.51%, and the tech-heavy Nasdaq increasing by 0.81%.
Over the past month, Alphabet stock has gained only 2.6%, underperforming both the Computer and Technology sector, which advanced by 7.05%, and the S&P 500’s gain of 4.61%.
Despite the recent dip, investors are closely watching the company’s upcoming earnings report. Analysts expect Alphabet to post earnings of $2.12 per share, representing a 12.17% year-over-year increase, with revenue projected at $78.86 billion, up 10.51% from the prior year.
For the full fiscal year, Alphabet is forecasted to earn $9.47 per share on $331.17 billion in revenue. These projections mark annual growth of 17.79% and 12.22%, respectively. Alphabet currently holds a Zacks Rank #3 (Hold), and recent analyst revisions to earnings estimates have been slightly positive—up 0.46% in the past 30 days.
From a valuation standpoint, Alphabet trades at a Forward P/E of 17.99, which is aligned with the industry average. Its PEG ratio, which considers expected growth, stands at 1.29, just below the Internet – Services industry average of 1.35, indicating the stock is reasonably priced based on earnings growth potential.
However, sentiment around Alphabet stock remains mixed. Cantor Fitzgerald analysts recently reaffirmed a Neutral rating and held their price target at $171.
They flagged concerns about potential declines in Alphabet’s search revenue if Samsung reduces its reliance on Google Search in favor of AI competitors like Perplexity. According to Cantor, Alphabet’s 2026 EBIT could fall by 3–5% if Samsung shifts even 40–50% of its search share away from Google.
Meanwhile, Truist Securities and BofA Securities reiterated Buy ratings, both setting a more bullish price target of $200. These firms pointed to Alphabet’s diversified revenue base—spanning YouTube, Google Cloud, and autonomous vehicle unit Waymo—as a sign of resilience and long-term growth potential.
Alphabet is also facing growing regulatory pressure. The U.S. Department of Justice has filed an antitrust lawsuit that could lead to a forced breakup of some of Alphabet’s core businesses, including Google Chrome.
On the international front, Germany is proposing a 10% tax on major digital platforms, including Alphabet, which could further complicate the company’s global operations and trade relations between the U.S. and Europe.
Despite the headwinds, many analysts believe Alphabet remains a strong long-term investment.
Its ongoing innovations in artificial intelligence, expansion in cloud services, and dominant position in digital advertising continue to offer significant upside—particularly for investors willing to ride out near-term volatility.