Bank of America's blunt 3-word note on Alphabet stock before earnings

Shares of Alphabet (GOOGL), the Google genitor company, are up 9.9% twelvemonth to day arsenic of Feb. 2, acold outpacing the S&P 500 Index's 1.9% gain.

Waymo, Alphabet's autonomous driving exertion subsidiary, revealed it had raised $16 cardinal successful its latest fundraising round, present valuing the institution astatine $126 billion, Reuters reported connected Feb. 2.

To immoderate investors, the quality reinforces the presumption that Alphabet inactive has overmuch upside.

In January, Google unveiled respective partnerships that strengthened Alphabet’s AI presumption arsenic contention intensified, including moving with Walmart (WMT) to motorboat a caller buying acquisition wrong its Gemini chatbot and partnering with Apple (AAPL) to integrate Gemini models into Apple Intelligence features, including an upgraded Siri expected successful 2026.

Alphabet reached $4 trillion valuation successful January, marking different milestone for the stock.

In 2025, Alpabet shares jumped 65.35%, the strongest show among the Magnificent 7 tech stocks.

Alphabet is acceptable to station its Q4 net aft the marketplace closes connected Feb. 4.

Analysts expect Alphabet to study gross of $111.07 cardinal and net of $2.63 a share, according to Investing.com.

Related: Cathie Wood buys $1.9 cardinal of megacap tech stock

On Oct. 30, 2025, Alphabet posted third-quarter results that topped Wall Street expectations, with gross expanding 16% to $102.35 billion, beating estimates of $99.89 billion. Adjusted net for Q3 were $3.10 a share, compared with marketplace forecasts of $2.33.

Alphabet’s shares roseate 2.5% connected Oct. 30, the adjacent trading time pursuing the Q3 report.

Growth successful Alphabet’s unreality concern was coagulated successful Q3, with Google Cloud revenues expanding 34% to $15.2 billion.

Alphabet repeatedly accrued its superior spending program successful 2025 and has indicated higher spending successful 2026.

“Looking retired to 2026, we expect a important summation successful CapEx and volition supply much item connected our 4th fourth net call,” Alphabet’s CFO Anat Ashkenazi said during the Q3 net call.

Analysts are rethinking their expectations for Alphabet earlier the report.

Bank of America analysts Justin Post and Nitin Bansal present expect Alphabet to study "an upside quarter" connected the usage ramp, according to a probe enactment sent to TheStreet.

The analysts reiterated a bargain standing and a $370 banal terms extremity for Alphabet, a people they raised from $335 successful January.

Related: Analysts revisit Nvidia-backed AI banal up of earnings

Last week, Meta (META) reported coagulated Q4 net and highlighted more-than-expected AI spending successful 2026. Based connected Meta's optimistic results and outlook, Bank of America said Google's Q4 hunt and unreality segments volition bushed Wall Street estimates by 13% & 35%, respectively.