Alphabet’s Google shares (NASDAQ: GOOG) stumbled into Friday’s session, opening at $369 as the stock struggles to hold ground after a strong spring rally. GOOG peaked at $408 in May after jumping from roughly $293 on the strength of an upbeat earnings report — but that momentum has faded, and some traders now worry the shares could slip back toward the $300 area.
What’s driving the pullback
- Macro uncertainty is weighing on markets: geopolitical tensions tied to US-Iran talks and a pickup in oil prices have left investors risk‑averse across asset classes, including equities and digital tokens.
- Skepticism on heavy spending: Alphabet’s plan to spend roughly $185 billion on AI infrastructure has drawn scrutiny. Many on Wall Street want to see clearer returns on that massive capex before supporting the rally.
A bullish counterpoint: Wells Fargo’s call
Despite the headwinds, global investment bank Wells Fargo Securities remains bullish. Senior equity analyst Ken Gawrelski gave GOOG a “strong buy” and an Overweight rating, predicting the stock could move back above $400 and reach a $435 price target — roughly an 18% upside from current levels. To put it simply, a $1,000 stake could theoretically be worth about $1,180 if that target is hit.
Why Wells Fargo is optimistic
Gawrelski points to accelerating enterprise demand for Google Cloud as the primary catalyst. He highlights a roughly $462 billion backlog of cloud demand that, in his view, more than offsets Alphabet’s infrastructure spending. He also says Alphabet may need to shift nearly 60% of its internal compute capacity to Google Cloud to service that demand — a transition that could meaningfully boost cloud revenue and help justify the capex outlay.
Bottom line
GOOG is caught between long-term AI investment narratives and short-term macro volatility. Bulls, led by analysts like Gawrelski, see a clear path to double‑digit gains if cloud demand translates into revenue growth. Skeptics remain cautious until Alphabet demonstrates tangible returns on its multibillion-dollar infrastructure buildout — a dynamic crypto traders watching broader market flows will want to keep an eye on.
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