Alphabet: Panic Surrounding Recent Brain Drain Is Pure Noise
Sentiment Analysis
Alphabet remains a Buy with a $399 base-case price target, reflecting its robust AI distribution moat and resilient operating margins. Recent high-profile DeepMind departures are a temporary setback, not a structural threat; GOOGL's innovation pipeline and scale remain intact. Q1 saw Google Cloud revenue grow 63% y/y to $20B, with backlog doubling to $460B, underscoring surging demand and strong execution. Capex guidance rises to $180–190B for FY2026, funded by an $84.75B equity raise; investors should monitor Gemini adoption and cloud growth post-Q2.
The last time I wrote about Alphabet (GOOGL) in February 2026, I analyzed the company’s progress made towards its AI monetization efforts. I also evaluated whether the company’s investments were yielding positive results or
Source: Seeking Alpha
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