Alphabet Upgraded to Strong Buy after 15% Slide, Raises $90B Equity
GOOG•Analyst upgraded Alphabet to Strong Buy after its stock slid 15% this month, citing a record $90 billion equity raise anchored by Berkshire Hathaway and Blackstone that de-risks planned CapEx. Rapid Waymo adoption, scaling of Gemini AI, and a robust cloud services backlog provide multi-year revenue visibility.
1. Strong Buy Upgrade After 15% Decline
An analyst raised Alphabet to Strong Buy following a 15% drop from recent highs, highlighting improved upside potential based on current valuation.
2. $90B Equity Raise De-risks CapEx
Alphabet secured a record $90 billion equity raise anchored by Berkshire Hathaway and Blackstone, ensuring funding for its planned capital expenditure on data centers and AI infrastructure while preserving financial flexibility.
3. Growth Catalysts in Waymo, Gemini and Cloud
Waymo’s driverless division is expanding rapidly, Gemini’s AI capabilities are scaling across products, and Google Cloud’s multi-year contract backlog provides clear revenue visibility through coming years.
