Our $280 price target is based on ~26.5x our GAAP EPS of $10.56 for 2026E. We maintain our Buy rating on shares given our view that Google's product halo—15 products with 500M+ MAUs & 7 with 2B+ MAUs—can lead to continued Search usage, and we are impressed with Gemini 2.5 Pro and the expanded version of AI Mode. However, our multiple reflects limited visibility greater competition in Search and GenAI products and continued regulatory headwinds.

Risks to Alphabet's target price include: 1) adverse economic and/or consumer spending trends could hinder advertising spend; 2) competition could prove to have a greater impact on company performance than we anticipate; 3) internet advertising spend could decelerate faster than we anticipate; and 4) regulatory pressures on anti-trust, data, and privacy practices could potentially have an adverse impact on performance.