Alphabet stock rose 4% on Friday, rebounding after a difficult start to February. The rally is supported by projected revenue increases from Google Cloud and its subsidiary Waymo. An investment bank set a price target of $365 for the stock, which closed at $314, citing strong growth in autonomous ride services.
Alphabet (GOOGL) stock rose 4% on Friday, helping it rebound from a rough first half of February. The stock closed at $314 after receiving solid buy calls on Wall Street last week.
A key factor is the expected boost in revenue from Google Cloud connected to generative AI investments. Those expenditures are projected to generate between $19 billion and $23 billion in cloud income, plus an additional $5 billion to $6 billion in advertising revenue over the 2026–2027 timeframe.
The investment bank TD Cowen gave a buy call for the stock with a target of $365. The bullish thesis comes despite a recent tech stock slump that has wiped away nearly $1.4 trillion in value.
The analysis emphasizes the growth of Alphabet’s subsidiary Waymo. Waymo completed 1.26 million trips in California in December, up from 1.02 million in September.
Waymo ended last year having quadrupled its annual trips, delivering 15 million rides and surpassing 20 million lifetime rides. The service now handles roughly 400,000 paid trips weekly across six U.S. cities.
The company aims to surpass one million paid rides each week by the end of 2026. It is laying the groundwork for launches in more than 20 additional cities this year alone.
As Tesla has faced regulatory scrutiny, it has opened the door for Waymo to lead in autonomous services. This dynamic is seen as a factor sending GOOGL stock higher.
