TLDR
- Google plans to double its data center capacity in Kronstorf, Austria, with total investment exceeding €1 billion
- Kathmere Capital Management increased its Alphabet stake by 35.2% in Q1, adding 10,509 shares worth ~$11.6 million
- Alphabet reported Q1 EPS of $5.11, beating estimates of $2.68, on revenue of $109.9 billion
- Multiple analysts maintain Buy ratings, with price targets ranging from $416 to $470
- GOOGL opened at $356.24 on Friday, down 0.7%, with a 52-week range of $175.74 to $404.47
Alphabet stock opened at $356.24 on Friday, down 0.7%, giving the company a market cap of $4.32 trillion. The stock sits below its 50-day moving average of $369.66 but well above its 200-day average of $335.08.
Google has filed permitting requests to expand its data center in Kronstorf, Upper Austria. The plan is to at least double the facility’s current capacity, pushing total investment in the project past €1 billion.
Construction on the first phase began in April. Google has already secured water rights to draw from the nearby Enns river for cooling the facility.
The Austria expansion comes as Alphabet continues to build out its AI infrastructure globally. It’s a big number, but one that fits the pace the company has been setting.
Institutional investors have been paying attention. Kathmere Capital Management raised its Alphabet position by 35.2% in Q1, buying an additional 10,509 shares. Its total holding now stands at 40,405 shares valued at approximately $11.6 million.
Several other firms also added to their positions during the same period, including Ring Mountain Capital, Cannon Financial Strategists, and HRC Wealth Management. Institutional investors and hedge funds collectively own 27.26% of the stock.
On the insider side, the picture is mixed. Major shareholder 2019 Gp L.L.C. sold 87,475 shares on May 15th at an average of $23.75. Director Frances Arnold sold 112 shares on June 30th at $351.28. Over the past 90 days, insiders sold a combined $8 million worth of stock.
Earnings Beat Drives Confidence
Alphabet posted Q1 EPS of $5.11, well ahead of the consensus estimate of $2.68. Revenue came in at $109.9 billion, topping analyst expectations of $106.96 billion and up 21.8% year-over-year.
Return on equity stood at 38.99%, with a net margin of 37.92%. Analysts now expect full-year EPS of $14.32.
The company also raised its quarterly dividend from $0.21 to $0.22 per share. The dividend was paid on June 15th to shareholders of record as of June 8th.
Analyst Targets Remain Elevated
Goldman Sachs held its Buy rating with a $450 price target following May earnings. Oppenheimer raised its target from $425 to $445, rating the stock Outperform.
Pivotal Research bumped its target to $470, up from $420, reiterating a Buy. Wells Fargo set a $416 target on July 2nd.
Of the analysts covering the stock, five have Strong Buy ratings, 27 have Buy ratings, and four have assigned Hold ratings. The average target price sits at $376.19.
Google Cloud partnerships continue to add to the positive tone, including a recent tie-up with Accenture to launch agentic AI solutions for mid-market businesses.
Wells Fargo issued its $416 price target on July 2nd, the most recent analyst note on the stock.
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