Will Google Stock (GOOGL) Come Crashing Back to Earth After Earnings? Wall Street Is Divided

Having more than doubled in the last 12 months, many Wall Street analysts are wondering if Google parent company Alphabet’s (GOOGL) stock is due for a correction after its financial results are released on April 29.

GOOGL stock is up 118% over the past year, leading gains in the Magnificent 7 technology stocks. The share price has been on fire since Alphabet emerged unscathed last summer from an antitrust legal case and following the release of newer, more powerful versions of its Gemini artificial intelligence (AI) chatbot.

But will the good time continue for Alphabet following its upcoming earnings print? Options markets expect more volatility than usual for GOOGL stock as the stakes around AI remain high. Derivatives markets anticipating a potential 5.63% price movement Alphabet’s stock, either up or down. That far exceeds Alphabet’s typical post-earnings stock fluctuation of 1.44%.

Alphabet’s AI Supremacy

Alphabet has emerged as the de facto leader in AI, pulling ahead of established rivals such as Microsoft (MSFT) and Meta Platforms (META), as well as startups such as OpenAI. The Gemini chatbot is being praised for its speed, accuracy and responsiveness.

But after such as big run higher in the share price and with expectations running extremely high, there is little room for error in Alphabet’s quarterly financial results, say analysts. Areas that analysts and investors will be watching closely in the print include updates regarding Gemini AI, as well as YouTube’s advertising revenue, and Google Cloud’s customer count.

Is GOOGL Stock a Buy?

The stock of Alphabet has a consensus Strong Buy rating among 31 Wall Street analysts. That rating is based on 26 Buy and five Hold recommendations issued in the last three months. The average GOOGL price target of $387.68 implies 10% upside from current levels.