Key Takeaways
- Waymo’s autonomous vehicles have logged 170.7 million driver-free miles, demonstrating approximately 10 times fewer serious accidents than human-operated cars
- Morgan Stanley maintains its Buy recommendation on GOOGL with a $330 price target, highlighting Waymo’s rapid scaling trajectory
- Evercore ISI sustains its Outperform rating with a $400 target following survey data showing Google’s search market share climbing from 70% to 75% between August 2025 and March 2026
- ChatGPT’s search market presence declined from 13% to 11% during the same timeframe; 52% of generative AI users reported increased Google search activity
- Alphabet has fallen approximately 7% year-to-date and roughly 17% below its 52-week peak of $349, though nearly 90% of analysts maintain Buy ratings
Alphabet (GOOGL) stock declined 2% during early Thursday trading sessions, reaching $285.27, as broader market headwinds applied pressure across technology sectors. The S&P 500 retreated 0.8% while the Dow Jones Industrial Average fell 0.4%, coinciding with oil prices surging over 4%.
The pullback occurred even as two separate analyst reports — originating from Morgan Stanley and Evercore ISI — delivered encouraging assessments regarding both Waymo’s autonomous vehicle progress and Google Search’s competitive positioning.
Morgan Stanley’s Brian Nowak maintained his Buy recommendation alongside a $330 price target, noting that “Waymo continues to scale faster than expected…leading with safety.” The autonomous driving division’s most recent statistics, covering through December 2025, reveal 170.7 million rider-only miles logged without human driver intervention.
These metrics exceeded Morgan Stanley’s internal projections.
Safety performance continues to demonstrate substantial improvements. Waymo’s data indicates approximately a tenfold reduction in serious collision rates and a five-times decrease in injury-producing accidents when compared to human-operated vehicles.
Waymo’s current deployment spans 10 U.S. metropolitan areas. Nowak anticipates 15 additional city launches throughout this year, complemented by fleet expansions in markets where service already exists. Industry analysts broadly project robo-taxi operations to multiply at least twofold annually over the coming years.
Alphabet is committing substantial capital to support this expansion trajectory. The technology giant is forecast to allocate over $170 billion toward new infrastructure and equipment in 2026 — nearly double the $91 billion deployed in 2025 — based on FactSet estimates. This represents significant capital outlay, even for an enterprise of this magnitude.
Google Maintains Search Dominance
Regarding search capabilities, Evercore ISI reaffirmed its Outperform stance and maintained a $400 price objective following completion of its eighth consecutive quarterly proprietary search analysis.
The research demonstrated Google’s search market position expanding from 70% to 75% during the August 2025 through March 2026 period. Simultaneously, ChatGPT’s search presence contracted from 13% to 11%.
Evercore reported no significant variation in Google’s portion of commercial-intent queries — such as product purchases or travel reservations — throughout the previous two-year span.
The investment firm increased conviction in its above-consensus Google Search revenue growth projection of 14%-plus for 2026, compared against Street consensus of 13%. This outlook factors anticipated high-single-digit expansion in both paid click volume and cost-per-click metrics.
One advertiser monitored a conversion rate that effectively doubled — jumping from 7% in Q1 2025 to 14% in Q1 2026. Advertising expenditure patterns remained generally stable or showed acceleration on a year-over-year basis entering Q1, though Evercore noted emerging caution within the most recent 10-day window.
Current Stock Positioning
GOOGL has retreated approximately 7% year-to-date and stands roughly 17% beneath its 52-week pinnacle of $349, which was achieved in February. The majority of this year’s decline has materialized since the commencement of the Iran conflict.
Despite the downturn, nearly 90% of Wall Street analysts covering the equity maintain Buy recommendations — significantly exceeding the typical 55%–60% Buy-rating proportion observed across S&P 500 constituents. The consensus analyst price objective hovers around $380, elevated from approximately $335 at 2026’s opening.
Alphabet’s revenue expanded 15% across the trailing twelve months, with analysts projecting 17% growth for fiscal 2026. The equity currently trades at a P/E multiple of 26.91 alongside a PEG ratio of 0.77.
