Alphabet reported strong fiscal fourth-quarter earnings with sales up 18%, driven significantly by Google Cloud’s 48% growth, affirming its position as an AI leader. Morningstar maintains a $340 fair value estimate, viewing the stock as fairly valued despite significant planned capital expenditures for AI in 2026. The company benefits from a wide economic moat and strong financial health but faces uncertainty from antitrust regulation and the high costs associated with AI investments.
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After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
Alphabet reported strong fiscal fourth-quarter earnings with sales up 18%, driven significantly by Google Cloud’s 48% growth, affirming its position as an AI leader. Morningstar maintains a $340 fair value estimate, viewing the stock as fairly valued despite significant planned capital expenditures for AI in 2026. The company benefits from a wide economic moat and strong financial health but faces uncertainty from antitrust regulation and the high costs associated with AI investments.