Cash reserves support valuation, the old trick again.

Although I/O showcased the best innovation in recent years, Google's stock price still fell 2%. Bank of America maintains an "Buy" rating on Alphabet, with a target price of $430, roughly an 11% increase from the current price. The core highlights are three user data points: 2.5 billion AI summaries, 1 billion Search dialogue layer AI Mode, and 900 million Gemini monthly active users. The bank states this indicates a transition to AI-native experiences, reducing disruption risks. The $430 target is based on a 28x P/E ratio in 2027 and cash reserves. The third and fourth quarter reports will test the revenue conversion of AI Mode.