JPMorgan Just Removed Alphabet From Its Analyst Focus List Rich Duprey Mon, November 9, 2026 at 11:40 AM EST 4 min read JPM +2.15% GOOG +1.99% META +5.06% GOOG +1.99% NVDA -5.39% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Alphabet (GOOG) lost its spot on JPMorgan's Analyst Focus List, though the bank kept its Overweight rating despite slower AI search monetization and heavy spending.
JPMorgan sees stronger near-term momentum at Meta (META), as Alphabet's search revenue grew just 12% despite record query growth.
Capex hit $51 billion in one quarter, free cash flow turned negative, and management expects spending to "increase significantly in 2027."
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JPMorgan (NYSE:JPM) removed Alphabet (NASDAQ:GOOG) from its Analyst Focus List but kept its Overweight rating on the stock. The firm pointed to slower AI search monetization and heavy AI infrastructure spending. JPMorgan lowered its near-term confidence in Alphabet stock without giving up its longer-term bullish view.
JPMorgan finds stronger near-term momentum at Meta Platforms (NASDAQ:META) than at Alphabet. The third-quarter results show where the pressure is. Search revenue grew 12% to $63.3 billion, even though query growth was the highest in five years. On the earnings call, JPMorgan's Douglas Anmuth asked about that gap. Alphabet's chief business officer said that strong growth in AI Mode queries "had an impact because of the lower monetization we were seeing in AI Mode."
Spending is the other concern. Capex reached $51.4 billion in the quarter, and free cash flow was negative $9.1 billion. Management kept its 2026 capex guidance at $195 billion to $205 billion and said it expects capex to "increase significantly in 2027." All of that expansion has to be powered, cooled, and connected by someone, and we included seven of those suppliers into a free AI infrastructure report.
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Third-quarter revenue rose 24.6% to $127.58 billion. Google Cloud revenue grew 103% to $30.71 billion, and the Gemini app reached 1 billion users. GAAP EPS of $2.12 missed the $2.97 consensus. The main cause was an $8.7 billion loss on equity securities, which ended a 12-quarter streak of earnings beats.
Google also revealed new 8tx and 8i Max TPU variants, which are built for secure, long-context AI workloads. The new chips expand its in-house alternatives to NVIDIA (NASDAQ:NVDA) hardware.
The stock traded at $293.16 Monday morning. That is 15.61% lower than a month ago and 6.4% lower for the year. Shares have still risen 5.37% over the past week. Reuters wrote that the shares may be ready for a corrective rally.
Valuation remains low at a P/E of about 12. Google Cloud's backlog stands at $561 billion, and management expects to recognize just over 55% of it as revenue within 24 months. JPMorgan's decision shows timing. It still holds a positive view of the business, but it finds stronger catalysts at Meta in the near term.
Those saving for retirement should note that JPMorgan kept its Overweight rating. The balance sheet is strong, with $265.1 billion in cash and marketable securities. The quarterly dividend is $0.22 per share.
Whether ads in AI Overviews and AI Mode, which are now expanding internationally, close the gap between query growth and revenue growth.
Whether the 2027 capex plan, due on the Q4 call, keeps free cash flow negative.
JPMorgan's revised outlook deserves a closer look from anyone with a multi-year time horizon. Near-term volatility remains a real risk while Alphabet keeps spending heavily on AI.
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