Key Stats for Alphabet Stock
- Price change for Alphabet stock in last 6 months: 2%
- $GOOGL Stock Price as of Oct. 19: $344
- 52-Week High: $348
- $GOOGL Stock Price Target: $430
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What Happened?
Alphabet (GOOGL) has proposed a deal with Xcel Energy to power a new AI data center in Pine Island, Minnesota.
The site is planned at 780 megawatts. Pine Island is a small town of about 4,000 people.
Google would help pay for new power supply on Xcel’s grid, which includes 1,400 megawatts of wind, 200 megawatts of solar, and 300 megawatts of battery storage.
It is more than the data center needs. Google says that’s because wind and solar don’t produce power all the time. Xcel says the new power will serve all local customers, not just Google.
The deal has built-in protections. Google would pay for at least 75% of its contracted capacity, even if it uses less.
If it ends the deal early, it could owe up to eight years of those minimum charges. The deal still needs approval from the Minnesota Public Utilities Commission.
GOOGL Stock Revenue, EBIT and Free Cash Flow Estimates in Billion USD (TIKR)
A Gallup survey found 71% of Americans oppose a data center in their local area.
Energy use is a top worry, while Google also wants to run on carbon-free energy around the clock by 2030.
Jigar Shah of Multiplier says companies could build smaller data centers where the grid already has spare room.
Watchdog David Pomerantz notes that utilities often earn about 10% returns on new builds, which can create conflicts.
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What the Market Is Telling Us About Alphabet Stock
For Alphabet stock, this is less about one site and more about the power problem behind AI. Demand is strong, and Alphabet says it is still short on supply.
Its Q2 cloud revenue grew 82%, and operating margin rose to 35.6%. Cloud backlog grew by more than $50 billion from the prior quarter.
Spending is the other side of the story. Alphabet raised its 2026 capex range from $180 billion to $190 billion, up to $195 billion to $205 billion.
It expects capex to rise significantly in 2027. Free cash flow was negative $5.9 billion in the quarter and management expects it to stay under pressure.
GOOGL Stock Valuation Model (TIKR)
The Xcel deal shows one way Alphabet may handle those costs. It lets Google fund grid upgrades tied to its own growth. It could also help ease community pushback.
Overall, Alphabet stock reflects fast AI growth paired with heavy spending. The Minnesota approval is one more item to watch.
Investors holding Alphabet stock will also watch whether the Cloud backlog turns into revenue. Management expects just over 50% of it to be recognized over the next 24 months.
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So what is Alphabet stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
Source: www.tikr.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
