Cigna earnings beat by $0.04, revenue topped estimates
Investing.com - BMO Capital has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $225.00 from $208.00 while maintaining an Outperform rating. The move aligns with broader market sentiment, as InvestingPro data shows 16 analysts have recently revised their earnings estimates upward, with analyst targets ranging from $160 to $250.
The firm cited Alphabet's "strong 2Q25 across the board," which has driven upward revisions to BMO's 2025 and 2026 estimates.
BMO Capital noted that AI adoption across Search is positioning Google to accelerate revenue growth in the second half of 2025.
Google Cloud momentum was better than expected, with BMO anticipating increased adoption into the second half of 2025 and 2026 as Vertex (NASDAQ:VRTX) AI and TPU/GPU performance enhancements drive higher deal sizes and volume growth.
Given these developments, Alphabet has raised its 2025 capital expenditure guidance to approximately $85 billion, up from $75 billion previously, with BMO now expecting this figure to grow to $96 billion in 2026. With a market capitalization of $2.32 trillion and a P/E ratio of 21.15, Alphabet continues to demonstrate strong investment potential.
In other recent news, Alphabet's second-quarter earnings report has caught the attention of several research firms, resulting in increased price targets for the company's stock. Evercore ISI raised its price target to $240, highlighting the strong earnings per share and revenue that surpassed expectations. Similarly, RBC Capital increased its target to $220, noting impressive revenue growth across all segments, even after accounting for a one-time legal settlement. Jefferies also boosted its price target to $230, citing Alphabet's advancements in Cloud and AI as key factors driving this change.
Alphabet's ongoing investments in AI are further evidenced by the unveiling of Aeneas, an AI model aimed at revolutionizing the study of ancient Latin inscriptions. This new tool enhances the capabilities of Google's previous models and is designed to assist historians in analyzing historical texts. Meanwhile, Meta Platforms (NASDAQ:META) has hired three AI researchers from Google DeepMind, who contributed to the development of a version of Google's Gemini model. These recent developments underscore Alphabet's continued focus on AI and its impact on various sectors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.