Alphabet’s Google stock (NASDAQ: GOOG) opened Wednesday at $343, up nearly 9% year-to-date but struggling to reclaim the $400 level. Morgan Stanley maintained a buy rating on the equity, urging institutional clients to accumulate shares. The bank’s analyst, Brian Nowak, set a price target of $400, representing a 17% return from current levels. Google’s decision to raise capital expenditure from $180 billion to $205 billion for AI infrastructure in 2026 is among the macroeconomic factors affecting the stock. While the investment bank remains bullish, retail traders remain skeptical of the stock’s near-term prospects.
Alphabet’s Google stock (NASDAQ: GOOG) opened Wednesday’s trading session at $343. The search engine giant has seen a rise of nearly 9% year-to-date and is finding ways to reclaim the $400+ territory.
The bears are currently in control of the equity, as its price has not seen a spurt. Several macroeconomic conditions are affecting GOOG, including the company’s decision to raise capex from $180 billion to $205 billion to build its AI infrastructure for 2026.
On the heels of the price grind, leading investment bank Morgan Stanley has maintained its buy rating on Google stock. In a note sent to clients on Tuesday (August 25, 2026), the bank urged institutional clients to accumulate GOOG.
The price prediction for the search engine giant remains bullish with a double-digit uptick. Traders who take an entry position even at the current levels stand a chance to earn profits, according to the investment bank’s forecast.
Brian Nowak, the Managing Director at Morgan Stanley, has predicted that Google stock would reach a target of $400 next. That’s a profit of nearly $57 per share if traders take an entry position today.
It is also an uptick and return on investment (ROI) of approximately 17% from its current price. Therefore, an investment of $1,000 could turn into $1,170 if the price predictions from Morgan Stanley turn out to be accurate.
Morgan Stanley’s analyst is confident that Google stock will reclaim the $400 zone. The last time GOOG was above $400 was in mid-May, and it’s been more than three months trading below the level.
Traders are also caught in a catch-22 situation, as prices are struggling to keep pace above $375. While investment banks remain confident in Google stock’s prospects, retail traders remain skeptical. A risk at this time could pay off if the price target from Morgan Stanley is met.
