Citizens Cuts Alphabet Stock (GOOGL) Price Target Ahead of Q3 Earnings, but Stays Bullish. Here’s Why

State regulators claim Entergy Arkansas customers will pay $308 million more for a solar and battery storage plant due to a deal with Google, as the cost shift avoids using Google's funds for construction.

Google and Meta updated their data usage policies in October 2026, potentially exposing them to EU fines of up to 10% of global sales. Google's changes allow ad personalization using data from connected services like Gmail and Photos, while Meta's terms permit crawling business websites. Both companies reported negative free cash flow in 2026 due to AI spending, but no regulators have opened cases yet.

Alphabet (GOOGL) reported strong Google Cloud growth in Q2 2026, with revenue up 82% YoY to $24.8B and operating income more than tripling. However, capital expenditures nearly doubled, exceeding operating cash flow. Investors are divided on whether the stock's lagging performance presents a buying opportunity or reflects justified caution about AI investment payback.

Amazon and Google signed 20-year deals with Constellation Energy for nuclear power, totaling $4.3B. Amazon secured 690 MW from Calvert Cliffs, while Google's deal covers 11 reactors. Critics question if these agreements will meet data center demand and impact household electricity costs. The Energy Department approved $4.4B in loans for nuclear facilities. Meta, Microsoft, and Amazon have also made significant nuclear power agreements.

Google presented plans for a $14B data center in Palo, Iowa, at an open house. The project includes six buildings, 180-720MW power use, and 180 permanent jobs. Google will invest $14B, generating $170M in tax revenue over 20 years. Water will be sourced from the Cedar River, with no tax breaks requested. Construction may start soon, but land ownership and power details remain unclear.

Microsoft, Alphabet, Goldman Sachs, and 13 other companies have objected to trading tokenized versions of their shares on OKXICE, a 24/7 crypto venue. The SEC's new rule allows such trading, but the companies' concerns include price drift and reputational risks. OKXICE plans to trade tokens for 62 companies, with 16 objecting so far. The objection list is dominated by AI and tech firms, which are particularly sensitive to price volatility and news-driven swings.