NEW YORK, Jan 2, 2026, 17:16 ET — After-hours
Alphabet Inc’s Class C shares (GOOG.O) were up 0.5% at $315.32 in after-hours trading on Friday, as investors weighed new bullish calls tied to Google’s AI-powered search push. The stock ranged from $310.71 to $322.86 in the session, with about 22 million shares traded.
The first trading day of 2026 is putting a familiar question back on the tape: how much upside big tech has left after last year’s run, and what counts as proof that expensive AI investment is paying off.
For Alphabet, that debate centers on Search, still its main profit engine. The company has been weaving generative AI into Search through AI Overviews, which summarize answers at the top of results, and an experimental AI Mode aimed at longer, chatbot-like responses.
Citizens analyst Andrew Boone raised his price target on Alphabet to $385 from $340 on Wednesday, a “price target” being a broker’s estimate of where a stock could trade over the next year. “We view AI search as a tailwind near term for query growth,” Boone wrote, pointing to AI features that he said are lifting engagement even as competition for queries intensifies. Barron’s
Google has also been rolling out Gemini 3 models, including Gemini 3 Flash, a faster version it said is available through the Gemini app and AI Mode in Search. Investors are watching whether better answers translate into more usage without driving computing costs sharply higher.
Wall Street started 2026 with a split tape. The Dow rose 0.66% and the S&P 500 added 0.19% on Friday, while the Nasdaq slipped 0.03%, Reuters reported, with chip stocks lifting the broader market even as Apple and Microsoft fell. Reuters also said traders are looking to next week’s U.S. labor-market data for clues on the Federal Reserve’s rate path.
Alphabet’s search push has drawn scrutiny beyond Wall Street. A Guardian investigation published Friday flagged inaccurate health advice appearing in Google’s AI Overviews, citing concerns from health groups; Google said most overviews are accurate and it continues to make improvements.
The next major catalyst for the stock is Alphabet’s quarterly report. Nasdaq estimates the company will report around Feb. 3, and investors are expected to focus on Google Cloud growth, advertising demand, and any commentary on how AI features are affecting engagement and monetization.
Traders are also watching whether GOOG can retake recent highs after Friday’s wide swing. MarketWatch data showed a 52-week high of $328.67.
For now, Alphabet is starting 2026 with optimism around AI-driven search still intact, but with less room for error on costs and product risk. The tone into earnings season will hinge on whether the company can show that new AI features lift usage and revenue, not just compute bills.
