Rosenblatt initiates coverage on Alphabet (GOOGL) with a Buy rating and $410 price target, citing search concerns as largely played out
Analyst Scott Devitt from Rosenblatt believes that concerns surrounding Alphabet's traditional search business have largely been priced in. This assessment comes as Google's Q2 2026 Search & other revenue grew 17% year-over-year to $63.3 billion, slightly missing Wall Street's expectations of $63.4 billion. The firm highlights Google Cloud's strong performance, with revenue surging 82% year-over-year to $24.8 billion and operating income more than tripling to $8.8 billion, as a key driver for future growth. Google's AI product Gemini also reached over 1 billion monthly active users by August 2026, becoming its fastest-growing product.
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