Analysts Recommend Buying Alphabet Stock Ahead of Key Events in May

TLDR

• Citi added Alphabet to its 90-day upside Catalyst Watch, pointing to a robust series of product events running through July 13.
• Major upcoming catalysts are Google Cloud Next (April 22–24), Q1 earnings (April 29), and Google I/O (May 19–20).
• Guggenheim maintained its Buy rating and $375 price target, predicting Q1 revenue of $107 billion, a 19% year-over-year increase.
• Google Cloud’s backlog reached $243 billion at the end of the year, a 161% year-over-year rise, with Cloud growth expected to exceed 50% YoY in Q1.
• Alphabet’s 2026 capital expenditure guidance of $175–$185 billion is almost twice the $91 billion it spent in 2025.

(SeaPRwire) –   Two Wall Street institutions are growing more positive on Alphabet as it heads into a busy period of product events and earnings reports. Citi and Guggenheim both released optimistic notes on Monday, each highlighting a schedule filled with announcements that could impact the stock’s performance.

Alphabet Inc. (GOOGL)

Citi analyst Ronald Josey included Alphabet in the firm’s 90-day upside Catalyst Watch, which spans through July 13. This decision was motivated by what he described as a “favorable catalyst trajectory” — a sequence of events that might boost the stock’s value in the coming months.

The bank identified Google Cloud Next (April 22–24) as the first key milestone. Subsequent events include Q1 earnings on April 29, YouTube’s Brandcast on May 13, Google I/O (May 19–20), and Google Marketing Live on May 20.

Citi anticipates product updates related to Gemini models, Search, YouTube, and Cloud during these events. The bank characterized the online advertising market as “relatively strong,” noting this supports sustained growth in Search revenue.

For consumers, Citi pointed out that Gemini now boasts over 750 million monthly active users. On the enterprise front, the firm stated that demand for Google Cloud and AI services “stays strong.”

Citi expressed confidence that Alphabet may exceed Wall Street’s revenue and operating income projections as new products launch in the upcoming weeks.

Guggenheim Projects 19% Q1 Revenue Growth

Guggenheim retained its Buy rating and $375 price target for Alphabet, providing a detailed breakdown of its Q1 2026 expectations. The firm forecasts revenue of $107 billion, a 19% increase from the prior year’s same quarter.

Breaking this down: Search and Other revenue is projected to rise 17% year-over-year. YouTube Ads are expected to increase by 12%. Cloud revenue is forecast to grow over 50% year-over-year, which is the most notable figure in the set.

The Cloud backlog strengthens this outlook. At the end of the year, it reached $243 billion, a 161% year-over-year gain. This pipeline is difficult to overlook.

Guggenheim also conducted a buyside survey on April 12, involving 98 participants. The results indicated expectations above the consensus for Search, YouTube Ads, and Cloud, with respondents also predicting capex to continue rising into 2027.

2026 Capex Almost Doubles From 2025

Alphabet’s 2026 capex guidance ranges from $175 to $185 billion, which is nearly twice the $91 billion it spent in 2025. While this is a significant outflow, Guggenheim predicts the company will exceed its previous peak free cash flow levels by 2028.

Looking further into the future, Guggenheim identified the Olympics, World Cup, and U.S. midterm elections as positive factors for YouTube’s ad pricing in 2026. Events with higher viewership typically drive up cost-per-thousand impressions, which is beneficial for the platform.

In a separate development, Mizuho increased its price target for Alphabet to $420 from $410 while maintaining an Outperform rating. The firm referenced stronger-than-anticipated indicators from the Anthropic partnership and adjusted its Cloud revenue estimate upward, forecasting it could hit $149 billion by 2027 — significantly higher than Bloomberg’s consensus of $116 billion.

Alphabet’s Q1 2026 earnings report is set to be released on April 29.