Key Takeaways
- In June, Google recorded 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 daily average users for Google expanded 12% year over year, maintaining growth even as ChatGPT and Claude experienced dramatic user increases
- Web traffic to Gemini has grown more than fourfold in the past year, capturing market share from ChatGPT while leaving Google Search intact
- Q2 results from Alphabet are scheduled for July 22; BofA anticipates possible upside to consensus search projections based on consistent traffic patterns and robust eCommerce activity
- BofA maintains its Buy recommendation with a $430 target; among 67 analysts monitored by FactSet, 86% assign GOOGL a Buy rating
Alphabet (GOOGL) stock currently trades at $355.67, reflecting a 14% gain year-to-date in 2026 while experiencing a 6.5% decline since late May. As the company prepares to release Q2 earnings on July 22, recent traffic metrics are providing encouraging signals for investors.
Recent analysis from BofA Securities, drawing on Similarweb and Sensor Tower metrics, reveals that Google attracted 2.8 billion worldwide web visits during June, representing a 4% year-over-year increase. While modest, this growth demonstrates resilience in a competitive landscape.
During the same timeframe, Claude experienced a dramatic 736% traffic spike. Meta AI recorded a 98% increase. ChatGPT traffic remained unchanged. Against this backdrop, Google maintained its market position.
The mobile segment reflected comparable trends. Google’s mobile daily average users expanded 12% year over year. Meanwhile, ChatGPT saw 51% growth and Claude skyrocketed 1,206%. Nevertheless, Google’s total user base continued its upward trajectory.
Gemini Growth Doesn’t Cannibalize Core Search
A significant concern entering 2026 centered on whether Gemini, Google’s proprietary AI offering, would divert traffic from conventional search functionality. Evidence suggests this hasn’t materialized.
Gemini’s web traffic expanded more than fourfold over the trailing twelve months. Daily mobile users surged 295%. These increases came primarily at ChatGPT’s expense rather than eroding Google Search volumes. Google’s integration of Gemini into its AI Overview search feature appears to be delivering results.
BofA analyst Justin Post highlighted that Google’s commentary about an “expansionary moment for Search” suggests ongoing momentum. He projects potential upside to Wall Street forecasts given consistent traffic data and healthy eCommerce activity during Q2.
Search advertising continues to represent the lion’s share of Alphabet’s total revenue, making these metrics particularly significant for the upcoming earnings announcement.
Wall Street Sentiment
During the previous earnings release on April 30, Alphabet delivered strong results. Earnings per share reached $5.11 compared to the $2.68 consensus estimate. Revenue totaled $109.9 billion, representing 21.8% year-over-year growth and surpassing the $106.96 billion projection.
The company simultaneously increased its quarterly dividend to $0.22 per share from $0.21.
BofA reiterated its Buy stance and $430 price objective on Monday. Scotiabank maintains a $450 target. Raymond James carries a Strong Buy rating with a $425 price target. The average across 70 analysts stands at Buy with a mean target of $378.53.
Headwinds Facing the Company
Challenges persist. A departure of researchers from DeepMind in June concerned investors, sparking questions about Alphabet’s competitive position versus OpenAI and Anthropic in developing cutting-edge AI models.
Regulatory challenges are intensifying. UK authorities have placed Google Cloud under direct supervision. An active legal battle continues in India regarding its advertising platform. Additional concerns have emerged regarding AI model access granted to Singapore-based entities with Chinese corporate ties.
Company insiders have divested $8 million in shares over the past 90 days. Director Frances Arnold disposed of 112 shares on June 30 at $351.28 per share.
Institutional appetite remains robust. Sageworth Trust Co expanded its Alphabet holdings by 56.1% during Q1. Institutional investors collectively control 27.26% of outstanding shares.
Alphabet’s market capitalization stands at $4.30 trillion. The stock reached a 12-month peak of $404.47.
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