New York, January 15, 2026, 16:43 (EST) — After-hours
- Alphabet’s non-voting Class C shares (GOOG) slipped 0.9% at the close and dipped further in after-hours trading.
- Publishers have petitioned a U.S. judge to allow them to join a lawsuit accusing Google of using copyrighted material to train its AI.
- RBC raised its price target for Alphabet as investors prepare for the company’s Feb. 4 earnings release.
Alphabet Inc’s non-voting Class C shares (GOOG) ended the day down 0.9% at $333.16, slipping to $333.00 in after-hours trading. Earlier, the stock dipped as low as $331.29 during the session.
The selling unfolded amid a market that held firm rather than spooked. Alphabet’s shares remain tethered to two key factors: the pace at which it can integrate Gemini into products and ads, and the legal risks that accompany those efforts.
A fresh copyright dispute adds another layer to the scene. It arrives as advertisers and regulators scrutinize Google’s use of AI-generated answers in search results—and the impact on publishers, users, and ad rates.
Publishers Hachette Book Group and Cengage Group moved on Thursday to join a class action in California federal court accusing Google of using copyrighted content to train its AI. “Publishers are uniquely positioned to address many of the legal, factual, and evidentiary questions before the Court,” said Maria Pallante, CEO of the Association of American Publishers. U.S. District Judge Eumi Lee will rule on their request. Reuters
Google is moving Gemini closer to the data within its apps. On Jan. 14, Google Labs VP Josh Woodward detailed a new “Personal Intelligence” feature in a blog post, explaining it can link to Gmail, Photos, YouTube, and Search. He emphasized that “connecting your apps is off by default,” and the company clarified that Gemini does not train directly on users’ Gmail inboxes or Photos libraries. blog.google
Google’s Marsden Hanna, global head of sustainability and climate policy, says linking new data centers to the U.S. transmission grid is now “the number one challenge.” One utility even told Reuters it could take 12 years just to study interconnection. Reuters
On Wall Street, some analysts remain optimistic about Alphabet’s ad revenue despite the growing legal challenges. RBC Capital’s Brad Erickson bumped his price target on Alphabet from $315 to $375, maintaining an Outperform rating. He pointed to stronger ad flow in Google’s AI-powered search features and steady conversion rates, though he noted early feedback on newer AI ad formats has been mixed.
Alphabet slipped even as the tape mostly climbed. The S&P 500 edged up 0.3% and the Nasdaq added 0.2% Thursday, buoyed by gains in chip stocks after Taiwan Semiconductor Manufacturing Co. posted robust profits and unveiled investment plans, according to the Associated Press.
Alphabet’s U.S.-listed shares come in two flavors: Class A (GOOGL), which grants voting rights, and Class C (GOOG), which doesn’t. Typically, their prices move in tandem during regular trading.
The route from new AI features to fresh revenue isn’t straightforward. Should the publishers push to expand the AI-training lawsuit, damages might spike, discovery could become more extensive, and additional plaintiffs could jump in. Any slip on privacy, or a regulator tightening scrutiny on personal data use in AI assistants, would slow things down even more.
Traders are zeroing in on Feb. 4, when Alphabet will release its Q4 and full-year results after market close, followed by an earnings call at 4:30 p.m. Eastern. Investors will be focused on updates around search ad performance, cloud growth, and the scale of its AI investments—key factors that will influence GOOG shares as February kicks off.
Related articles: NASDAQ:GOOG
