NEW YORK, Jan 22, 2026, 16:50 EST — After-hours
- GOOG jumped in after-hours trading following Raymond James’ upgrade of Alphabet to “Strong Buy” and a price target boost to $400
- A U.S. judge allowed a consumer antitrust lawsuit targeting Google’s search agreements to move forward, maintaining legal pressure on the company
- All eyes now shift to Alphabet’s Feb. 4 earnings report, with investors eager to hear updates on ad revenue, cloud expansion, and AI investments
Alphabet’s non-voting Class C shares (GOOG) jumped roughly 0.7% to $330.84 in after-hours trading Thursday, following Raymond James’ upgrade to “Strong Buy” and a boosted price target of $400. Analyst Josh Beck highlighted that Alphabet’s AI “stack”—covering chips, models, and software powering its AI products—is now “shifting to high gear,” prompting him to raise forecasts for Google Cloud and Search. Throughout the session, shares fluctuated between $328.90 and $335.57, pegging Alphabet’s market cap near $2.94 trillion. 1
The action came amid a wider risk-on rally. U.S. stocks rose for the second day running as investors digested tariff news alongside economic data showing resilience, leaving big tech squarely in focus. Gregg Abella, CEO of Investment Partners Asset Management, captured the uncertainty perfectly: “you do not know whether it is Christmas morning or Friday the 13th.” 2
Alphabet will release its fourth-quarter and full-year 2025 results Wednesday, Feb. 4, with a conference call scheduled for 4:30 p.m. ET. Investors are keen to see updates on ad demand, progress in Google Cloud, and whether expenses tied to AI infrastructure continue to rise. 3
Legal news remained in focus Wednesday as a federal judge in California denied Google’s attempt to toss out a consumer lawsuit. The suit alleges Google uses deals with major tech companies to block competitors in online search, including arrangements that set Google as the default across devices and apps. U.S. District Judge Rita Lin ruled the proposed class-action plaintiffs presented enough evidence to proceed with key claims. However, she dismissed claims related to conduct before 2017 but gave plaintiffs the chance to revive those. The allegations mirror a Justice Department case that led to a 2024 ruling declaring Google holds an illegal monopoly in online search, Reuters reported. 4
For investors, Alphabet’s growth story comes with a regulatory cloud. Even if Google’s core business stays intact for now, court rulings can shake confidence in default-search agreements and raise questions about their long-term viability under the spotlight.
The analyst upgrade shifted focus back to execution. Bulls argue Alphabet can convert its AI rollout into stronger ad results and quicker cloud expansion, not merely ramp up spending.
That lane is packed. When it comes to cloud, Google remains in pursuit of Microsoft and Amazon, with quarterly results serving as one of the rare clear measures investors have to judge if it’s actually stealing market share or just benefiting from overall growth.
The AI build-out boils down to margins as much as products. Investors have repeatedly rewarded firms delivering AI-driven revenue—and just as swiftly punished those hyping AI while costs spiral.
But the scenario can flip. A weaker ad market would directly impact Alphabet’s largest profit source, while increased capital expenditures might drag down cash flow, even if revenue stays steady. Plus, a prolonged antitrust battle could ultimately alter the default search deals that underpin Google’s dominance.
Traders will be watching closely in the next session to see if Thursday’s after-hours gain holds or if the stock pulls back as positions shift ahead of the next earnings wave.
Feb. 4 brings the next major test: Alphabet’s earnings after the bell, plus management’s take on ads, Google Cloud, and how fast—and costly—their AI investment is moving.
