Alphabet’s Google stock (NASDAQ: GOOG) drew intense focus following a 13% plunge on October 29, 2026, dropping sharply from $322 to $282 and wiping out almost 40 points in a single session. This downturn followed the company’s Q3 earnings report on October 28, 2026, representing the steepest single-day decline for Alphabet since its 2004 initial public offering. The sell-off underscored a major pivot on Wall Street, where investors are no longer blindly rewarding artificial intelligence expenditures. Concerns escalated after Alphabet leadership conceded during the earnings call that the company faces difficulties monetizing its newly introduced “AI mode” search results.
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Why Bank of America is Bullish on Google Stock
On October 30, 2026, Bank of America Securities analyst Justin Post issued a buy rating for Google shares. In a communication to clients, he characterized the 13% drop as a “massive overreaction” by Wall Street. Describing the equity as “undervalued” at current levels, he detailed several factors supporting why investors should look beyond the Q3 report. The analyst encouraged institutional clients to purchase shares during the pullback, maintaining that acquiring GOOG under the $300 threshold presents an advantageous opportunity.
Justin Post pointed out that market anxiety stems from concerns that “AI Overviews” might reduce conventional search traffic and click-through rates. Nevertheless, he emphasized that Google has effectively managed every major technological shift in its history. He voiced firm optimism that Alphabet will successfully capitalize on its substantial AI traffic in upcoming quarters. Once that monetization takes hold, the share price could rebound significantly rather than linger around $282. Consequently, the Bank of America Securities analyst established a price target of $380 for the stock.
Reaching the $380 target would represent a 37% appreciation for Google shares, delivering a double-digit return on investment if the projection proves correct. Under this scenario, a $1,000 investment would grow to $1,370 should the Bank of America Securities forecast materialize. This prospect positions Google stock as a key asset to monitor, given its substantial upside. Establishing a position in the $278 range and maintaining a long-term holding strategy is presented as an advantageous approach.