Alphabet Class C ( (GOOG) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Alphabet Class C shares edged higher as Google unveiled Gemini Embedding 2, its newest AI model built to handle text, images, video, audio, and documents in a single “embedding space.” The model operates in over 100 languages and is aimed at powering tasks like semantic search, sentiment analysis, clustering, and RAG, strengthening Alphabet’s position in the fast-growing AI infrastructure race.
Gemini Embedding 2 can process long text inputs, multiple images, short video clips, and raw audio, which Google claims is a significant leap over prior models and rivals. Wall Street currently rates Alphabet Class C a Strong Buy, with an average price target implying roughly 22% upside for GOOGL, while broader Alphabet forecasts suggest nearly 30% upside on expectations that aggressive capex and surging cloud profits will fuel multi‑year growth.
Alphabet Class C is also ramping up capital expenditures dramatically, guiding to $175–$185 billion this year, more than double 2025 levels, to fund AI and cloud expansion. Despite the heavy spending, revenue climbed to $113.8 billion in Q4 2025, up 18% year over year, with Google Cloud revenues jumping 48% to $17.7 billion, underscoring strong demand for its services.
Notably, Google Cloud’s operating income surged to $5.3 billion from $2.1 billion a year earlier, easing concerns that growth is coming at the expense of profitability. Top investors like Daniel Sparks see the capex surge as a calculated risk, arguing that Alphabet Class C could potentially double in value over the next five years if it continues to leverage its cloud momentum and dominant search franchise.