Intel stock extends gains after report of possible U.S. government stake
On Tuesday, BMO Capital Markets reiterated an Outperform rating on Alphabet Inc. (NASDAQ:GOOGL) with a steadfast price target of $200.00. According to InvestingPro data, the tech giant maintains impressive financials with a PEG ratio of 0.47, suggesting attractive valuation relative to its growth potential. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis. BMO’s analysis highlights the tech giant’s ongoing developments in its Gemini project and the anticipated rollout of Android 16, which is expected to enhance user experience across its vast ecosystem of devices.
Gemini, Alphabet’s multifaceted initiative, is making strides in natural language processing with Gemini Live, which is integrated into Android devices worldwide. The project’s real-time information processing is set to enhance user interactions and increase query volumes. Upcoming expansions into television, automotive, and wearable technologies are poised to bolster engagement on platforms like YouTube and improve training capabilities for Alphabet’s self-driving car venture, Waymo.
The upcoming Android 16 update, featuring Material 3 Expressive, is designed to offer a more personalized user experience, with updates in theming, components, motion, and typography. The update also includes a Live Update feature to present relevant information promptly and a Customizable Home Screen to facilitate efficient task completion.
Alphabet is also focusing on security across its devices, with three new features aimed at bolstering user safety. These include enhanced AI protection against messaging scams, a Find Hub to help locate items, and Advanced Protection for users seeking stronger security measures.
In the realm of communication, the firm notes that Alphabet’s Rich Communication Services (RCS) are facilitating over one billion U.S. messages monthly, improving interactions between Android and iOS users and potentially driving retention and increased device usage.
BMO Capital Markets also forecasts growth in hardware sales within Alphabet’s Subs, Platform, and Devices segment, projecting approximately $6 billion in 2025, up from an estimated $5 billion in 2024. The company’s robust financial health is evident in its $359.71B revenue and 58.59% gross margin. For deeper insights into Alphabet’s financial metrics and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 12 additional key ProTips. Despite this, the firm emphasizes that YouTube Subscription, TV, and Google Play are expected to remain the primary growth drivers for the segment.
In other recent news, Alphabet Inc. is facing significant developments that could impact its future operations. Moltiply Group, the operator of Trovaprezzi.it, has filed a lawsuit against Google, seeking nearly $3.34 billion in damages. The lawsuit alleges that Google abused its dominant market position, which was previously recognized by the EU Court of Justice. Meanwhile, Bernstein analysts have maintained their Market Perform rating on Alphabet, noting a shift in search behaviors due to the rise of generative AI tools like ChatGPT. Despite Alphabet not missing search revenue targets since ChatGPT’s launch, there is a noted slowdown in paid clicks and a decline in search volumes on Apple (NASDAQ:AAPL) devices.
Citi analysts have reaffirmed a Buy rating on Alphabet, with a $200 price target, emphasizing the company’s innovation in generative AI, including developments like Gemini and AI Overviews. However, Apple’s Eddy Cue commented on a decline in Google Search volumes on Safari, attributed to the popularity of AI-driven search tools. Gene Munster of Deepwater Management views these shifts as potential challenges for Google’s traditional monetization model and increased competition from new market entrants. These recent developments highlight the evolving dynamics within the search engine market and Alphabet’s strategic responses to maintain its competitive edge.
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