By Fred Imbert
Publication Date: 2026-02-23 11:49:00
Alphabet shares are set to outperform again because the company has the “3 key traits of [an] AI winner,” according to Wells Fargo. Analyst Ken Gawrelski upgraded the Google and YouTube parent to overweight from equal weight. His price target of $387, up from $354, signals upside of more than 22% from Friday’s close. Alphabet shares are up 75% over the last 12 months, far outpacing the S & P 500 14% advance. But the stuck has struggled recently along with the rest of the Magnificent 7. Alphabet shares are down 4% in the past one month and are little changed for the year. GOOGL .SPX 1Y mountain GOOGL vs SPX 1yr Gawrelski gave three characteristics Alphabet has that positions it to dominate in AI: data, distribution and computing capacity. “[We] believe GOOGL has all the pieces necessary to be an AI winner, with an industry-leading capacity position to support internal efforts (Search, Gemini) and monetize externally through GCP, broad distribution network, and vast consumer data,”…