Erste Group Bank Decreases Earnings Estimates for Alphabet

Alphabet Inc. (NASDAQ:GOOG) – Erste Group Bank decreased their FY2026 earnings estimates for shares of Alphabet in a report issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the information services provider will post earnings per share of $20.56 for the year, down from their previous estimate of $20.59. The consensus estimate for Alphabet’s current full-year earnings is $20.60 per share.

Other analysts have also issued reports about the stock. Sanford C. Bernstein reduced their price target on shares of Alphabet from $390.00 to $385.00 and set a “market perform” rating for the company in a research note on Thursday, July 23rd. Freedom Capital upgraded shares of Alphabet from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 23rd. China Renaissance lowered their price objective on shares of Alphabet from $485.00 to $445.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. Canaccord Genuity Group set a $450.00 target price on Alphabet in a report on Thursday, July 23rd. Finally, Wells Fargo & Company set a $417.00 target price on Alphabet and gave the stock an “overweight” rating in a report on Tuesday, October 6th. Six equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $421.85.

Alphabet Stock Performance

GOOG stock opened at $316.83 on Monday. Alphabet has a 52 week low of $267.17 and a 52 week high of $404.47. The firm’s 50-day moving average is $338.50 and its two-hundred day moving average is $338.78.

Insider Transactions at Alphabet

In related news, Director Frances Arnold sold 83 shares of Alphabet stock in a transaction dated Wednesday, September 30th. The stock was sold at an average price of $340.45, for a total transaction of $28,257.35. Following the transaction, the director directly owned 19,076 shares of the company’s stock, valued at $6,494,424.20. The trade was a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 247 shares of company stock worth $83,288 over the last quarter. 12.99% of the stock is owned by insiders.

Institutional Investors Weigh In On Alphabet

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Readystate Asset Management LP bought a new stake in Alphabet during the second quarter worth approximately $45,352,000. BlackRock Inc. boosted its stake in shares of Alphabet by 1.4% during the 2nd quarter. BlackRock Inc. now owns 369,922,502 shares of the information services provider’s stock worth $130,704,718,000 after acquiring an additional 5,164,200 shares in the last quarter. State Street Corp grew its holdings in shares of Alphabet by 2.8% in the 2nd quarter. State Street Corp now owns 190,923,442 shares of the information services provider’s stock worth $67,458,980,000 after acquiring an additional 5,208,690 shares during the last quarter. Amundi grew its holdings in shares of Alphabet by 22.9% in the 1st quarter. Amundi now owns 21,922,379 shares of the information services provider’s stock worth $6,288,654,000 after acquiring an additional 4,083,758 shares during the last quarter. Finally, Deutsche Bank AG raised its position in shares of Alphabet by 5.6% during the second quarter. Deutsche Bank AG now owns 17,313,729 shares of the information services provider’s stock worth $6,117,460,000 after purchasing an additional 913,666 shares during the period. 27.26% of the stock is owned by institutional investors and hedge funds.

Key Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: AI and Cloud growth are the primary catalysts. Analysts expect resilient Search advertising, accelerating AI-driven monetization and continued strength in Google Cloud. Cloud revenue previously grew rapidly, while its backlog reportedly reached $514 billion, providing substantial visibility if Alphabet can convert bookings into profitable cash flow. Can Strong Search and Cloud Growth Drive GOOGL’s Q3 Earnings?
• Positive Sentiment: Anthropic’s IPO filing highlights demand for Google Cloud infrastructure. Anthropic disclosed roughly $114.5 billion in non-cancelable compute commitments with Alphabet. The agreements could support long-term Google Cloud revenue, while Alphabet’s approximately 14% Anthropic stake provides additional potential upside if the IPO is well received. Anthropic’s IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Google introduced Genie 4, a DeepMind model capable of creating more realistic, interactive worlds with audio and real-time steering. The release reinforces Alphabet’s AI leadership, although near-term revenue benefits remain uncertain. Google’s Genie 4 world model adds audio, more realistic worlds, and real-time steering
• Neutral Sentiment: Earnings volatility is elevated. Options activity and analyst commentary suggest investors anticipate a significant move after results. Key items will be Search growth, Cloud margins, AI product adoption, capital expenditures and free cash flow.
• Negative Sentiment: Heavy AI spending remains the central risk. Alphabet has reportedly doubled capital expenditures and suspended buybacks, raising concerns that infrastructure costs and depreciation could outpace AI revenue gains. Investors may react negatively if management increases spending without showing improving margins and cash generation. Alphabet Q3 Earnings Preview: US$200 Billion AI Capex Test Puts Major Uptrend at Risk
• Negative Sentiment: Multiple law firms are promoting a securities class action alleging Alphabet misrepresented progress on its Gemini 3.5 Pro model. The announcements add headline pressure, though they do not represent a new operating development and the ultimate financial impact is uncertain. GOOG and GOOGL Investor Class Action Filed

Alphabet Company Profile

Alphabet Inc is a technology holding company best known as the parent organization of Google. Founded in 2015 through a corporate restructuring, Alphabet oversees Google and a collection of businesses focused on technology, online services, communications, artificial intelligence, and other emerging areas.

Google’s principal products and services include its internet search engine, digital advertising platforms, YouTube, Android, Chrome, Google Maps, Google Play, and Google Workspace. The company also provides cloud computing, data storage, cybersecurity, productivity, and artificial intelligence services through Google Cloud.