Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) stock fell more than 1% Wednesday as investors weighed upbeat AI growth expectations against a softer broader market and rising spending requirements.
BNP Paribas Sees Alphabet Benefiting From AI Demand
The Communication Services sector slipped 0.5%, while the S&P 500 edged down 0.1%, adding pressure to Alphabet shares.
BNP Paribas analyst Nick Jones reiterated an Outperform rating and a $420 price target, saying Alphabet remains well-positioned to benefit from AI-driven growth across advertising and Google Cloud.
Jones also highlighted the company’s elevated investment needs. Alphabet reiterated plans for a significant increase in fiscal 2027 capital spending, while depreciation could remain uneven as additional data-center capacity comes online.
