Global banking giant Goldman Sachs has issued a ‘firm buy’ rating on Alphabet’s Class A Google stock (NASDAQ: GOOGL). The investment bank raised its price target on GOOGL while maintaining its firm buy call. This comes at a time when the search giant has been struggling to climb above the $400 level for two weeks. Its price has stagnated after the Q1 earnings call on April 29, 2026. Alphabet’s Cloud business is now in focus, with revenues surging.
Google stock had risen from a low of $273 in late March to a high of $404 in mid-May this year. That’s a surge of nearly 48% in less than two months as it experienced a phenomenal rally on the heels of the earnings call. Alphabet’s revenue hit $109.9 billion and beat all market expectations. Goldman Sachs is confident that Google stock will break out above $400 and reach a new price target. The company is shifting gears from maintaining its place as the search giant to becoming a dominant force in the AI industry.
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‘Expect Double-Digit Profits’: Google Stock New Price Target From Goldman Sachs (GOOGL)
GOOGL opened Friday’s trading session at $387 and remains rangebound in the indices. Goldman Sachs’ new price prediction projects Google stock to reach a new high of $450 next. The previous estimate provided by the global bank was at $400. The development indicates that smart money is bullish on GOOGL’s prospects for its dominant role in the AI industry.
Google stock would rise by another 17% if Goldman Sachs’ price prediction turns out to be accurate. Therefore, an investment of $1,000 could turn into $1,170, generating double-digit gains for traders. Not every asset in the broader US market is capable of delivering two-digit profits to investors. The upcoming string of AI feature launches places Alphabet ahead of the curve compared to its competitors.