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StocksMedium•12 February 2026•

1 min read

Alphabet Rated 'Buy' Amid Strong Cloud Growth, CAPEX Concerns Downplayed

Sundar Pichai in glasses on an orange background, beside a Google Discover interface with news cards for Cosan and Lincoln National, and rising graphs.

An analyst has assigned a 'Buy' rating to Alphabet (GOOG), projecting a significant 46% upside to a $455 price target. This optimistic outlook comes despite recent stock weakness, which was largely attributed to increased capital expenditure (CAPEX). Google Cloud demonstrated robust performance, with its revenue surging by 48% year-over-year in the fourth quarter. Concerns regarding the company's rising CAPEX and bond issuance are deemed overblown by the analyst. This assessment is based on Alphabet's strong free cash flow and substantial liquidity, which are seen as sufficient to manage these investments. The increased CAPEX is viewed as a strategic investment, particularly in AI, expected to drive future profitability and stock appreciation.