Key Highlights
- GOOGL reached a record peak of $384.28, currently hovering around $386.94
- First quarter 2026 earnings per share reached $5.11, crushing the $2.62 estimate; total revenue achieved $109.9 billion
- JP Morgan designated GOOGL as its premier investment selection for 2026, elevating the price objective to $460
- The Gemini API now handles more than 16 billion tokens each minute, demonstrating successful AI revenue generation
- Cloud division backlog jumped to $460 billion, positioning it as a significant margin growth catalyst
Google’s parent company is experiencing unprecedented trading levels. GOOGL achieved a record high of $384.28 and currently sits near $386.94, representing approximately 1.3% gains for the session.
Shares have surged over 133% during the past twelve months. This impressive rally stems from robust quarterly performance and significant institutional accumulation ahead of the April 29 Q1 earnings release.
The results exceeded expectations substantially. Alphabet delivered earnings per share of $5.11 compared to analyst projections of $2.62. Total revenue reached $109.9 billion, surpassing the Street’s $106.79 billion estimate.
The tech giant maintains a market capitalization near $4.72 trillion. Current valuation metrics show a P/E ratio of 29.43 alongside a PEG ratio of 0.62, indicating potential upside remains despite recent gains.
Year-over-year revenue expansion hit 22%. Achieving this level of top-line acceleration at such massive scale represents a noteworthy accomplishment that investors are clearly recognizing.
JP Morgan Elevates GOOGL to Premier Investment Status
JP Morgan analyst Doug Anmuth increased his valuation target from $395 to $460 after reviewing the quarterly results. This new objective suggests approximately 20% appreciation potential from present levels.
Anmuth noted that Alphabet has progressed past the testing stage with artificial intelligence initiatives. The Gemini API currently handles over 16 billion tokens per minute, demonstrating the company’s ability to monetize its AI infrastructure investments.
JP Morgan’s perspective emphasizes that Google has successfully transformed infrastructure expenditures into revenue-generating operations. This represents a narrative evolution that addresses previous investor concerns.
Pivotal Research similarly boosted its GOOGL projection, establishing a $470 target. This places two influential Wall Street firms with valuations significantly above current trading prices.
Freedom Broker adopted a contrasting stance. Following the earnings-driven rally, the firm moved GOOGL from buy to hold, though still increased its target to $400 from $365.
Cloud Division Backlog Reaches $460 Billion
Google Cloud represents an increasingly vital component of the growth narrative. The Cloud backlog expanded to $460 billion, which JP Morgan identifies as providing sustainable competitive advantages.
Cloud profitability metrics are projected to continue expanding. This segment could deliver consistent earnings growth for the foreseeable future, based on JP Morgan’s evaluation.
Thirty-one Wall Street analysts have upgraded their forward earnings projections prior to the upcoming reporting period. This degree of collective estimate revision signals strong underlying business momentum.
InvestingPro data suggests the stock appears overvalued according to their Fair Value framework. This consideration remains relevant even as the bullish thesis strengthens.
Separately, Alphabet CEO Sundar Pichai held recent discussions with U.S. government representatives regarding AI infrastructure capacity and federal computing requirements. The Trump administration is simultaneously evaluating oversight frameworks for emerging AI systems before their commercial deployment.
Shares appreciated more than 35% from late March through early May, advancing from approximately $273 to $383, before breaking through to new all-time highs.
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