Alphabet’s Google stock (NASDAQ: GOOG) has plunged close to 10% in a month shedding nearly 33 points since June. It is among the least performing Magnificent Seven stocks this quarter, even after Alphabet delivered robust Q2 revenues in its latest earnings call. The slump came after the company announced an increase in capital expenditure to build its AI infrastructure. The spending went from $180 billion to $215 billion for 2026, which is the primary cause for Wall Street to get worried about the company’s overspending.
Google stock fell to a low of $317 on Friday, but ended the day’s trade at $319. Fears are high that GOOG could fall below the $300 level; institutional giants have paused buying and could take an entry position after it plunged to the $290 range. The search engine giant was at $283 before the previous quarterly earnings report that sent its price to $408 after the revenues. Chances are high that GOOG could fall to the $280 zone again, as the capex spending has engulfed Wall Street.
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Google Stock Receives a Price Target Downgrade From DA Davidson
Investment banking firm DA Davidson has downgraded Google’s stock price target after Alphabet’s earnings call. Analyst Gil Luria maintained his hold rating in a note to clients sent on Thursday (July 23, 2026). GOOG’s price target was lowered from $375 to $350. That’s a straight cut of $25, indicating that Wall Street is not too confident in the stock’s prospects. The lowering of the target shows that Wall Street is seriously worried that the increasing capex could adversely affect the company’s performance.
According to the DA Davidson analyst, Google stock could rise by another 10% to reach $350. Therefore, an investment of $1,000 could turn into $1,100 if the price prediction reaches the mentioned target. This is still double-digit returns, but Wall Street is cautiously treading on Alphabet. Even Microsoft, Amazon, and Nvidia are facing severe scrutiny on capex with no real-time returns yet. While the stage is set for the next generation of technology, the cost to build is moving higher.