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Investing.com - Cantor Fitzgerald has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $201.00 from $196.00 while maintaining a Neutral rating following the company’s second-quarter results. According to InvestingPro data, 16 analysts have recently revised their earnings upwards for the upcoming period, with price targets ranging from $160 to $250.
Alphabet reported second-quarter results with total revenues and earnings per share exceeding Street expectations by 3% and 6%, respectively. Search revenues grew 12% year-over-year, or 11% excluding foreign exchange effects, surpassing prior Street forecasts of 9% year-over-year growth. The company maintains robust financial health, earning a "GREAT" rating on InvestingPro’s comprehensive assessment, with particularly strong scores in profitability and growth metrics.
The company’s Cloud segment showed accelerated growth of 32% year-over-year, representing a 4-percentage point improvement, despite Alphabet remaining supply-constrained in this area. EBIT margin increased by 150 basis points year-over-year, excluding a legal settlement, as the company continued to find operational efficiencies despite accelerating depreciation and amortization. The company maintains strong fundamentals with a healthy current ratio of 1.9 and more cash than debt on its balance sheet.
Alphabet raised its fiscal year 2026 capital expenditure outlook by 13% to $85 billion amid what Cantor Fitzgerald described as "mega-cap capex wars." The research firm raised its FY26 EPS estimate by 4% following the results.
Cantor Fitzgerald noted that while the second quarter was solid and should drive Street FY26 EPS estimates higher by mid-single-digit percentages, focus now shifts to an expected Antitrust ruling in August, which the firm believes "could be an overhang on shares in the near term."
In other recent news, Alphabet’s financial performance has prompted several firms to adjust their outlook on the company. Wedbush has increased its revenue and operating income estimates for Alphabet’s third quarter and 2025, projecting revenue of $99.1 billion and operating income of $32.7 billion, which are up 12.3% and 33% year-over-year, respectively. UBS raised its price target for Alphabet to $202, citing strong earnings and a 12% year-over-year growth in Search, which exceeded investor expectations. JMP Securities also raised its price target to $225, highlighting that Alphabet’s second-quarter results surpassed consensus estimates, driven by growth in Search, YouTube, and Cloud segments, with AI being a significant contributor. KeyBanc Capital Markets increased its price target to $230, emphasizing the momentum driven by artificial intelligence across Alphabet’s business units. Stifel raised its target to $222, noting solid first-quarter results with healthy advertising trends in Search and YouTube, and outperformance in the Cloud segment. These developments reflect a positive sentiment among analysts regarding Alphabet’s recent performance and future prospects.
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