Alphabet stock rating reiterated at Outperform by RBC ahead of Q2

Investing.com - RBC Capital has reiterated an Outperform rating on Alphabet (NASDAQ:GOOGL) with a price target of $200.00 ahead of the company’s second-quarter earnings report, due July 23. The tech giant, currently valued at $2.3 trillion, has seen 12 analysts revise their earnings expectations upward for the upcoming period, according to InvestingPro data.

The firm expects Alphabet to beat expectations in Q2, particularly in its Search business, where late-quarter checks indicated advertisers continue to experience pricing fatigue but have made virtually no changes to their spending levels.

RBC believes both Alphabet and Meta (NASDAQ:META) have strong incentives to extract more from advertising budgets as a means to maintain shareholder support for their heavy investments in artificial intelligence technology.

The investment outlook for Alphabet remains mixed, with potentially strong financial results offset by the pending August decision from Judge Mehta and persistent concerns about the company’s AI strategy, according to RBC.

The firm’s industry contacts have confirmed some weakness in Meta’s advertising auctions and, to a lesser degree, similar patterns at Alphabet, though RBC views these factors as less indicative of a broader slowdown.

In other recent news, Alphabet has been the focus of several notable developments. Stifel has raised its price target for Alphabet to $218, citing positive trends in Search and healthy monetization rates for AI Overviews. Wolfe Research and Evercore ISI both reiterated their Outperform ratings on Alphabet stock ahead of the company’s second-quarter earnings report. Wolfe Research maintained a price target of $190, while Evercore ISI set theirs at $205, with expectations of a "Modest Beat" in Q2 earnings. Additionally, Alphabet’s Google DeepMind announced that its Gemini AI system achieved a gold medal at the 2025 International Mathematical Olympiad, marking a significant improvement from the previous year. Meanwhile, Alphabet, along with other major tech firms, faced scrutiny from lawmakers concerning security safeguards against China and Russia, particularly regarding submarine communications cables. These recent developments reflect a mix of financial expectations and technological achievements for the company.

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