Balanced Risk-Reward and Strong AI Momentum Justify Hold Rating on Alphabet

Monness analyst Brian White has maintained their neutral stance on GOOGL stock, giving a Hold rating on January 26.

Brian White has given his Hold rating due to a combination of factors related to Alphabet’s growth prospects, competitive environment, and valuation. He sees the company as fundamentally strong, expecting solid fourth-quarter results with mid-teens percentage revenue growth and earnings that are at least in line with market expectations. Key businesses such as Google Services and Google Cloud are projected to grow at healthy rates, with cloud in particular poised for accelerating expansion. Moreover, recent advances in Alphabet’s AI capabilities, including the rollout of Gemini 3 and a significant multi-year partnership with Apple to support future Apple Intelligence features, underscore Alphabet’s strategic positioning in generative AI and cloud infrastructure.
At the same time, White tempers his enthusiasm given several balancing risks. While digital advertising trends remain favorable, he notes a modest slowdown from prior quarters and points out that sequential growth is expected to trail typical seasonal patterns. He also highlights that the competitive landscape in AI and cloud is evolving quickly, with major rivals like Microsoft and others intensifying pressure in key markets. Additionally, he considers Alphabet’s valuation demanding in the context of an uncertain macroeconomic backdrop and sharply rising capital expenditures planned for 2026. Taken together, these positives and risks lead him to conclude that Alphabet’s risk‑reward profile is fairly balanced at current levels, supporting a Hold rather than a more aggressive rating.

In another report released on January 26, Bernstein also maintained a Hold rating on the stock with a $305.00 price target.