Alphabet stock holds steady as Cantor Fitzgerald maintains Neutral rating

Investing.com - Cantor Fitzgerald has reiterated its Neutral rating on Alphabet (NASDAQ:GOOGL) stock, maintaining a price target of $201.00 following the company’s recent strategic product launches. The tech giant, currently trading near its 52-week high of $256 and commanding a market capitalization of $3.05 trillion, has shown remarkable strength with a 55.75% return over the past year. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The investment firm noted that Alphabet has made several key moves in the three weeks since the remedy ruling in its search antitrust trial, including integrating Gemini directly into Chrome for Mac and Windows desktop users, with iOS mobile integration coming soon.

Chrome represents a significant distribution channel for Alphabet’s offerings with over 4 billion monthly active users and 70% market share on desktops, accounting for approximately 35% of the company’s total search revenue.

While Gemini’s monthly active users currently represent less than 10% of total Chrome users, Cantor Fitzgerald expects Alphabet to aggressively promote the AI assistant within the browser to drive adoption.

The firm also highlighted data from OpenAI showing ChatGPT users perform an average of 3.5 queries daily, similar to the roughly 3 search queries performed on Google Search worldwide (excluding China), suggesting AI assistants could achieve comparable engagement levels over time.

In other recent news, Alphabet has been the focus of several significant developments. The company announced a major upgrade to its Chrome browser, integrating Gemini AI capabilities, which is described as the most substantial update in the browser’s history. This feature is initially available to AI Pro and Ultra subscribers in the U.S. and will soon be accessible to business users through Google Workspace. In response to these advancements, Citizens JMP raised its price target for Alphabet to $290, maintaining a Market Outperform rating. Additionally, Baird and Truist Securities have also adjusted their price targets for Alphabet, citing the company’s continued dominance in the search market, with Baird setting a target of $275 and Truist Securities at $285. Furthermore, Google is preparing to propose changes to its advertising technology business to comply with a European Union directive following a €3 billion fine. The proposal, expected by early November, will not include a complete breakup of its Ad Manager.

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