Alphabet (GOOGL) Stock Holds Strong as Q2 Earnings Approach on July 22

Key Takeaways

• June data reveals Google achieved 2.8 billion global web visits, marking a 4% year-over-year increase despite Claude’s 736% traffic explosion and Meta AI’s 98% jump
• Mobile engagement strengthened with a 12% year-over-year rise in Google’s daily average users, maintaining growth amid ChatGPT and Claude expansion
• Gemini traffic expanded more than 4x annually, capturing market share from competitors while leaving Google Search’s user base intact
• BofA Securities projects potential upside to consensus estimates for Q2 results scheduled for July 22, citing consistent traffic patterns and robust eCommerce activity
• Wall Street consensus leans heavily bullish: 86% of 67 FactSet-tracked analysts recommend buying GOOGL; BofA holds $430 target

Shares of Alphabet (GOOGL) are currently priced at $355.67, reflecting a 14% gain year-to-date in 2026, though the stock has retreated 6.5% from its late-May peaks. As the company prepares to unveil second-quarter results on July 22, newly released traffic metrics are providing ammunition for optimistic investors.

Alphabet Inc., GOOGL

According to recent research from BofA Securities utilizing Similarweb and Sensor Tower analytics, Google recorded 2.8 billion worldwide web visits during June, representing a 4% annual increase. While this growth rate won’t break any records, it demonstrates resilience in an increasingly competitive landscape.

The backdrop makes these figures particularly noteworthy. Claude experienced an astronomical 736% traffic increase during the same timeframe. Meta AI posted a 98% gain. ChatGPT visits remained essentially unchanged. Yet through this shifting competitive terrain, Google maintained forward momentum.

Mobile engagement metrics paint a comparable picture. Google’s mobile daily active users expanded 12% year-over-year. Meanwhile, ChatGPT registered 51% growth and Claude skyrocketed 1,206%. Nevertheless, Google’s total user count continued its upward trajectory.

Gemini Growth Doesn’t Cannibalize Core Search

Entering 2026, market observers expressed concern that Gemini, Google’s proprietary AI assistant, might siphon users away from the company’s flagship search engine. Current data suggests those fears were misplaced.

Gemini’s web traffic soared more than 400% over the past twelve months. Mobile daily users surged 295%. Critically, these gains appear to have come primarily from ChatGPT rather than Google Search itself. The company’s integration of Gemini into its AI Overview search feature seems to be delivering the intended complementary effect.

BofA analyst Justin Post highlighted Google management’s characterization of an “expansionary moment for Search” as evidence of ongoing momentum. He identifies potential for results to exceed consensus forecasts given the combination of stable traffic metrics and healthy eCommerce transaction volumes throughout Q2.

Given that search advertising continues to represent the lion’s share of Alphabet’s consolidated revenue, these traffic patterns carry significant weight as earnings day approaches.

Wall Street’s Verdict

Alphabet’s previous quarterly disclosure on April 30 significantly exceeded expectations. Earnings per share reached $5.11 compared to the $2.68 consensus forecast. Revenue totaled $109.9 billion, representing 21.8% year-over-year growth and surpassing the $106.96 billion estimate.

The company simultaneously announced a dividend increase to $0.22 per share from the prior $0.21 level.

BofA reiterated its Buy recommendation and $430 price objective this Monday. Scotiabank has established a $450 target. Raymond James maintains a Strong Buy stance with a $425 projection. The aggregate view across 70 covering analysts points to a Buy rating with a mean price target of $378.53.

Headwinds Facing the Company

Not everything has gone according to plan. A wave of departures from DeepMind in June unsettled shareholders, sparking questions about whether Alphabet can maintain pace with OpenAI and Anthropic in cutting-edge AI development.

Regulatory challenges are also mounting. UK authorities have placed Google Cloud under enhanced regulatory supervision. The company faces continuing legal battles in India concerning its advertising platform. Additional concerns have emerged regarding AI model access being granted to Singapore-based entities with Chinese corporate ties.

Company insiders have liquidated approximately $8 million in shares over the last 90 days. Board member Frances Arnold disposed of 112 shares on June 30 at a price of $351.28 per share.

Despite these insider sales, institutional appetite remains robust. Sageworth Trust Co expanded its Alphabet position by 56.1% during the first quarter. Institutional investors collectively control 27.26% of outstanding shares.

Alphabet commands a market capitalization of $4.30 trillion. The stock touched a twelve-month peak of $404.47.

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