Alphabet shares climb despite KeyBanc cutting its AI-driven price target
Alphabet stock rose 1.29% after KeyBanc lowered its target to $410 while keeping an Overweight rating. Investors focused on Cloud profit growth.
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what happened
Alphabet, the Google parent known for search and cloud, traded at $345 at 12:50 p.m. ET on Monday, October 19, up 1.29% from Friday's close. The gain came even though KeyBanc lowered its price target. According to Benzinga, analyst Justin Patterson cut the target to $410 from $435 and kept an Overweight rating, which still implies roughly 19% upside.
In the second quarter, Cloud operating income reached $8.814 billion, compared with $2.826 billion a year earlier. Google Services operating income rose to $39.544 billion from $33.063 billion. Total operating profit grew by $9.499 billion to $40.770 billion, and by calculation from the reported figures, Cloud supplied about 63% of that increase.
why it matters
The key question is whether Alphabet can keep turning its heavy AI spending into profit. According to GF Value, the shares trade 33.36% above its $258.70 valuation reference, which suggests investors are already pricing in substantial growth. The next test is whether Cloud can keep converting demand into earnings while infrastructure costs rise.
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- Alphabet Stocks Rise Although KeyBanc Cuts Its AI Valuation Target — gurufocus.com, 20 October 2026 at 17:16 UTC
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