Vandita Jadeja
5 min read
Quick Read
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Alphabet (GOOG) trades at a trailing P/E of just 15 with a $514B Cloud backlog and 82% Cloud revenue growth, driving a $437 price target with 25% upside.
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Microsoft (MSFT) trades at twice Alphabet’s earnings multiple despite Azure growing at roughly half Google Cloud’s pace, making GOOG look undervalued versus peers like Meta (META).
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Capex doubled to $45B, pushing free cash flow negative and suspending buybacks, but the bear case of $372 still sits above today’s price.
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Alphabet (NASDAQ:GOOG) trades at $349.52. The projected 24/7 Wall St. price target is $437.50, meaning 25.17% upside over the next 12 months. Our rating is buy with fairly high confidence.
24/7 Wall St. Price Target Summary
Google Cloud is the catalyst. Its revenue grew 82% in Q2, up from 63% in Q1 and 48% in Q4 2025. Backlog hit $514 billion. Our target stands above the 52-week high of $403.96, so reaching it would mean new highs.
Cloud Acceleration Keeps Alphabet Within Reach of Its High
GOOG has gained 1.52% over the past week, 4.28% over the past month, 11.7% year to date and 43.37% over the past year. Shares sit about 13.5% below the 52-week high and around 43.2% above the low of $244.03.
In the Q2 report, revenue of $119.80 billion beat the $116.91 billion estimate and rose 24.23%. EPS of $9.11 exceeded the $3.0427 estimate, although a $99.03 billion gain on equity securities inflated that figure. The cleaner signal was operating income, which rose 30.38% to $40.77 billion, while Search grew 17%.
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Why Bulls See $455 and Beyond
The bull case rests on Cloud’s profitability. Cloud operating margin rose to 35.6% from 20.7% a year earlier. Management expects just over 50% of the backlog to become revenue within 24 months. Gemini reached 950 million monthly users, nearly 90% of the Fortune 100 use Gemini Enterprise, and Gemini 4 is in pre-training.
