Shares of Google’s parent Alphabet (GOOGL) are sliding after the company’s second quarter report, despite an earnings per share and revenue beat. Nonetheless, several Wall Street analysts remain bullish on the stock as they believe the quarter does not change Alphabet’s positive growth story.

RESULTS: Last night, Alphabet reported second quarter earnings per share of $5.01 and revenue of $26.01B, above consensus of $4.46 and $25.64B, respectively. The company reported its aggregate paid clicks were up 52% and its aggregate cost-per-click was down 23% from the prior year. Alphabet reported its traffic acquisition costs, or TAC, to Google Network Members in Q2 was $3.04B, up from $2.62B in the same quarter of last year. Alphabet also noted that the $2.74B EU fine regarding its display and ranking of shopping search results and ads was accrued in the second quarter.

SELLOFF AN OVERREACTION: In a post-earnings research note, Barclays analyst Ross Sandler pointed out that Alphabet results were “solid” but a “tad shy” of the heightened buy-side expectations. The mix shift to faster-growing low-margin businesses, and the likely decelerating growth in desktop search, is challenging for Google to manage, the analyst noted, adding that he expects margins to continue to contract. Nonetheless, Sandler told investors that the selloff seems like an overreaction given the pace of innovation, and recommends adding to positions. Meanwhile, Bank of America Merrill Lynch analyst Justin Post raised his price target on Alphabet to $1,100 from $1,035. While the primary sources of modest disappointment in the quarter were traffic acquisition costs, or TAC, and core Google operating margins, he believes its topline growth drivers remain intact. Additionally, the analyst argued that the company is demonstrating solid progress in Artificial Intelligence, Streaming, and Cloud. Citi analyst Mark May also raised his price target for Alphabet to $1,180 saying the second quarter results were strong despite falling short of heightened expectations. The stock’s valuation remains “reasonable” with Alphabet continuing to post 20%-plus growth, May told investors. Joining his peers, JPMorgan analyst Doug Anmuth raised his price target for Alphabet to $1,115 from $1,075. The quarter is not thesis-changing, Anmuth argued, as Alphabet’s strong growth continues. The analyst reiterated an Overweight rating on the shares.