Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Wolfe Research raised its price target on Alphabet (NASDAQ:GOOGL) to $350.00 from $290.00 on Thursday, maintaining an Outperform rating as the company’s AI initiatives drive accelerating growth.
The firm cited Alphabet’s third-quarter Search revenue acceleration to 14.5% year-over-year, up from 11.7% in the second quarter, with paid clicks growth improving to 7% year-over-year compared to 4% in the previous quarter.
Alphabet’s AI Mode has reached more than 75 million daily active users, with queries doubling over the quarter as the company’s CEO noted that AI-powered features are driving further acceleration of query growth compared to the second quarter.
Google Cloud Platform revenue accelerated to 33.5% year-over-year growth with backlog increasing 79% year-over-year to $155 billion, while operating margin improved to 23.7% compared to 17.1% in the third quarter of 2024.
Alphabet raised its full-year 2025 capital expenditure guidance by $8 billion to $93 billion, with "significant" growth expected for 2026 as the company continues to invest in AI infrastructure amid tight supply conditions expected to persist through next year.
In other recent news, Alphabet Inc. reported its financial results for the third quarter of 2025, showcasing a significant earnings surprise. The company achieved earnings per share of $2.87, surpassing the expected $2.29, which represents a 25.33% surprise. Additionally, Alphabet’s revenue reached $102.3 billion, exceeding the anticipated $99.79 billion. This revenue milestone was bolstered by strong performances across its core segments, including Search, YouTube, and Google Cloud, each surpassing consensus estimates. Following these results, BMO Capital raised its price target for Alphabet stock to $340 from $294, maintaining an Outperform rating. The research firm highlighted the impressive quarterly performance as a key factor in its decision. These developments mark a period of robust growth and positive analyst sentiment for Alphabet.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.