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Investing.com - Canaccord Genuity raised its price target on Alphabet (NASDAQ:GOOGL) to $330.00 from $270.00 on Thursday, while maintaining a Buy rating on the stock following the company’s strong third-quarter results.
Alphabet reported quarterly revenue exceeding $100 billion for the first time in company history, with operating income margin reaching 33.9% excluding a $3.5 billion European Commission fine, representing a year-over-year expansion of approximately 160 basis points.
The tech giant saw growth acceleration across most major business segments, including Search, YouTube, Subscriptions, and Cloud, with AI investments driving broad business momentum. In Search specifically, AI Overviews and AI Mode contributed to higher growth in overall queries and commercial queries compared to the second quarter.
YouTube benefited from Gemini improving recommendation systems and driving engagement growth, while Google Cloud revenue growth accelerated 180 basis points quarter-over-quarter despite facing more difficult comparisons. The company’s cloud backlog grew 46% quarter-over-quarter to $155 billion.
For its outlook, Alphabet raised its fiscal year 2025 capital expenditure guidance by approximately $7 billion at the midpoint and expects a "significant increase" in 2026, signaling continued investment in AI capabilities that Canaccord believes are "increasingly translating into tangible product and monetization gains."
In other recent news, Alphabet has reported strong third-quarter 2025 earnings, with revenue reaching $102 billion, marking a 15% growth rate excluding foreign exchange effects and surpassing analyst expectations by 3%. The company’s operating income was $34.7 billion, with a 33.9% margin that exceeded Street estimates by 7%. Piper Sandler noted a 16% revenue growth in Q3, highlighting acceleration in Alphabet’s Search, YouTube, and Cloud segments. Evercore ISI responded to the strong results by raising its price target for Alphabet to $325, maintaining an Outperform rating. DA Davidson also increased its price target to $300, citing significant growth in Google Cloud services. Baird raised its price target to $310, emphasizing the positive impact of generative AI on Alphabet’s core businesses. Citizens reiterated its Market Outperform rating, with a $290 price target, pointing to strong AI infrastructure utilization. These developments reflect the company’s robust performance and strategic positioning in the technology sector.
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