Raytheon awarded $71 million in Navy contracts for missile systems
Investing.com - BofA Securities has maintained its Buy rating and $217.00 price target on Alphabet (NASDAQ:GOOG), which currently trades near its 52-week high with a market capitalization of $2.36 trillion. According to InvestingPro data, the company maintains a "GREAT" financial health score, with 30 analysts recently revising their earnings estimates upward.
The investment firm noted that Google (NASDAQ:GOOGL)’s critical metrics including traffic, search share, and mobile daily active users remained relatively stable through July, even as artificial intelligence adoption increased across several sites, including Google’s own Gemini. With revenue growing at 13.13% and a P/E ratio of 20.65, the company continues to demonstrate strong market performance.
BofA’s analysis suggests that AI-driven usage appears to be incremental rather than disruptive, with growing adoption complementing existing search activity instead of significantly altering user behavior patterns.
The firm expressed encouragement regarding increasing Google App usage compared to browser-based activity, along with Gemini’s traction reaching 450 million monthly active users in July, up from 400 million reported in May.
BofA Securities believes the market may be underestimating AI-driven upside potential for Google search and YouTube monetization, with the next catalyst for Alphabet expected to be the Department of Justice search remedy ruling anticipated in August. For deeper insights into Alphabet’s valuation and growth metrics, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Alphabet Inc. reported impressive financial results for the second quarter of 2025, exceeding analyst expectations in both earnings per share (EPS) and revenue. The company achieved an EPS of $2.31, surpassing the forecasted $2.17, and reported revenue of $96.43 billion, beating projections by 2.68%. Meanwhile, BofA Securities reiterated its Buy rating on Apple (NASDAQ:AAPL), maintaining a price target of $240.00. The firm highlighted potential revenue risks for Apple due to possible changes in Google search payments, which could impact Apple’s annual revenue significantly.
In another development, Google launched Deep Think for Gemini app Ultra subscribers, enhancing problem-solving capabilities with a model that performs impressively on mathematical benchmarks. Additionally, Google introduced new AI Mode features for back-to-school preparations, allowing users to interact with images and documents more effectively. Avis Budget (NASDAQ:CAR) Group announced a strategic partnership with Waymo to offer a fully autonomous ride-hailing service in Dallas, with Avis providing essential fleet operations support. These developments reflect ongoing innovations and strategic movements within the tech industry.
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