Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - BofA Securities has raised its price target on Alphabet (NASDAQ:GOOGL) to $280.00 from $252.00 while maintaining a Buy rating ahead of the company’s October 29 earnings report. The new target sits near the high end of Wall Street’s range of $185-$285, with InvestingPro data showing the stock trading close to its 52-week high of $257.58.
The firm’s checks indicate third-quarter advertising spending is ahead of expectations, supported by improving macroeconomic conditions, increasing data use, and advertisers spending more to offset organic search traffic declines.
BofA has raised its revenue forecast above Street consensus, now expecting third-quarter revenue of $86.0 billion versus the Street’s $85.0 billion, though its EPS estimate of $2.17 falls below the consensus $2.29 due to anticipated legal charges of $3.9 billion.
The firm estimates third-quarter operating expenses of $29.6 billion with operating margins declining 259 basis points year-over-year to 35.7%, though margins would improve year-over-year excluding one-time legal charges.
BofA expects strong search results with stable paid click growth, which could alleviate AI disruption risk and aid multiple expansion, while also anticipating management to highlight recent Gemini usage momentum and noting that recent Cloud deals could aid backlog growth.
In other recent news, Alphabet’s Verily has launched a new consumer health app named Verily Me, which offers personalized health recommendations based on users’ medical records. This development was highlighted at the HLTH USA 2025 event. In another significant update, Scotiabank has increased its price target for Alphabet to $310, citing a recovery in the company’s advertising business, with ad growth returning to double digits. This growth is attributed to easier comparisons and increased advertiser spending. Additionally, Google has introduced Veo 3.1, an upgraded version of its AI filmmaking tool, Flow, which now includes new audio features. In the realm of cancer research, Google announced a breakthrough with its Gemma model, which has identified a promising new pathway for cancer therapy development. Furthermore, Google plans to invest $15 billion in establishing its first AI hub in India, marking its largest investment in the country so far. This hub will be located in Visakhapatnam and is expected to be developed over the next five years.
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