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Alphabet Stock Falls Despite Bullish Calls Backing Waymo and Search

Wall Street cites Waymo’s scale alongside rising search share to look past near-term volatility.

Overview

  • Morgan Stanley and Evercore ISI, in Thursday research notes, reaffirmed positive ratings on Alphabet with $330 and $400 targets after highlighting Waymo’s rapid scaling and a fresh survey showing Google Search share rising to 75%.
  • Waymo reports 170.7 million rider-only miles through December 2025 with roughly ten times fewer serious crashes and five times fewer injury crashes than human drivers, reinforcing its safety case.
  • Waymo now operates in 10 U.S. cities, and Morgan Stanley expects about 15 additional city launches in 2026 as fleets expand, which the firm frames as a faster-than-expected rollout.
  • FactSet now projects Alphabet will spend about $170 billion on equipment in 2026, up from $91 billion in 2025, signaling a heavy buildout to support AI infrastructure and robo-taxi growth.
  • Alphabet shares slipped about 2% to $285.27 in early trading, leaving the stock down roughly 7% this year and about 17% below its February peak even as nearly 90% of analysts rate it a Buy.