NEW YORK, January 1, 2026, 09:54 ET — Market closed
Citizens Financial Group analyst Andrew Boone raised his price target on Google parent Alphabet to $385 from $340, citing AI Mode and AI Overviews in Search and the release of the Gemini 3 model, even as ChatGPT and Perplexity vie for users, Barron’s reported. “We view AI search as a tailwind near term for query growth,” Boone wrote, and the new target implies about 22% upside from Tuesday’s close, the report said. U.S. stock markets were closed on Thursday for the New Year’s Day holiday. 1
Alphabet’s non-voting Class C shares (GOOG) last closed at $313.80 on Dec. 31, down about 0.2% on the day. The company’s market capitalization stood around $2.94 trillion.
The bullish note lands as investors reset positions for 2026 after an AI-led rally that pushed Alphabet shares up about 65% in 2025, Reuters reported. With valuations elevated, traders are looking for confirmation that new AI features can defend the core advertising business and support cloud growth without squeezing profitability. 2
A price target is an analyst’s estimate of where a stock could trade over the next 12 months. Boone’s call adds to a growing debate over whether AI-enhanced search results lift engagement and ad pricing, or push users toward rival chatbots.
Alphabet has two publicly traded common share classes. Class A shares trade as GOOGL and carry one vote per share, while Class C shares trade as GOOG and carry no voting rights.
With no U.S. trading session on Thursday, investors had little new price discovery and instead leaned on analyst notes and macro headlines. Alphabet’s shares often trade in tandem with other mega-cap growth names as rate expectations shift.
The question for 2026 is whether Google can turn AI features into incremental revenue while funding the computing power behind them. Data-center and chip spending has become a key swing factor for margins across Big Tech.
Trading is scheduled to resume Friday after the holiday closure, the Associated Press reported. 3
One early catalyst is the Institute for Supply Management’s manufacturing PMI, due Friday at 10:00 a.m. ET; PMI is a survey gauge of business activity. The index was last at 48.2 in November, below the 50-point line that separates expansion from contraction, YCharts data show. 4
Next week brings key labor-market data, including the Job Openings and Labor Turnover Survey on Jan. 7 and the monthly employment report on Jan. 9, according to the Labor Department’s schedule. Those releases are closely watched by the Federal Reserve and can drive moves in large-cap tech. 5
Alphabet is expected to report quarterly results on Feb. 3 after the close, according to Yahoo Finance’s earnings calendar. Investors will parse Search advertising trends, YouTube and Google Cloud performance, and any update on AI-related capital spending. 6
Investors Business Daily said Alphabet shares hit an all-time high of $326.92 in 2025, leaving that level as a marker traders will watch as 2026 trading picks up. Bulls will need the next earnings season to back up the view that AI is strengthening, not cannibalizing, Google Search. 7
