Alphabet’s Google stock (GOOG) is under pressure, falling from a May high of $408 to open Friday trading near $369. Despite broader macroeconomic concerns and skepticism over its $185 billion AI infrastructure investment, Wells Fargo Securities has issued a “strong buy” rating, predicting the stock could reach $435. Analyst Ken Gawrelski cites a massive $462 billion backlog in Google Cloud enterprise demand as a key catalyst for future growth.
Alphabet’s Google stock opened Friday’s session at $369, struggling to maintain momentum after reaching $408 in May. Traders fear the equity could retreat below $300 as it remains at the mercy of broader market pressures.
Macroeconomic pressures stem from US-Iran talks and rising oil prices, affecting the wider US market. Wall Street is also skeptical of Alphabet’s planned $185 billion capital expenditure on AI infrastructure without seeing tangible gains.
Despite these concerns, Wells Fargo Securities has given Google stock a ‘strong buy’ call. Analyst Ken Gawrelski expressed confidence the stock is poised to climb above $400.
In a note to clients, Gawrelski wrote that “GOOG is on its way to climb above the $400 threshold.” He backed this prediction by highlighting the growing demand for Google Cloud enterprise.
Gawrelski pointed to a massive $462 billion backlog that he believes will outweigh the company’s AI spending. He also noted Alphabet may shift nearly 60% of its internal computing capacity to Google Cloud to meet surging customer demand.
