DA Davidson holds Alphabet stock at Neutral, $200 target

On Wednesday, DA Davidson maintained its Neutral rating on Alphabet (NASDAQ:GOOGL) shares with a consistent price target of $200.00. Currently trading at $206.38, near its 52-week high of $207.05, the stock has delivered an impressive 44.16% return over the past year. The firm’s stance comes after Alphabet reported fourth-quarter earnings for 2024 that did not meet revenue expectations and showed a slowdown in the growth of Google Cloud. According to InvestingPro analysis, the company appears fairly valued at current levels.

The technology giant’s earnings report revealed challenges in its Google Cloud Platform (GCP) business, including tougher competition and capacity constraints that acted as obstacles in the last quarter. Despite these difficulties, the company has experienced positive effects from integrating artificial intelligence (AI) across its range of products, which includes Search, Android, and Google Cloud. InvestingPro data shows Alphabet maintains strong fundamentals with a ’GREAT’ financial health score and robust revenue growth of 14.38% in the last twelve months.

Alphabet has introduced AI Overviews in its Search function, which has reportedly led to increased user satisfaction and higher usage rates. These advancements in AI are part of Alphabet’s ongoing efforts to enhance its product offerings and user experience.

DA Davidson’s analyst noted the company’s success in incorporating AI technology but also pointed out the issues faced by the GCP segment. The analyst did not provide additional comments on Alphabet’s management or their future outlook.

Alphabet’s stock performance and investor sentiment will continue to be influenced by its ability to address the challenges faced by its cloud division and capitalize on the integration of AI into its products. The company’s Neutral rating and $200 price target by DA Davidson reflect a cautious but not pessimistic view of its potential to navigate the competitive tech landscape.

In other recent news, Alphabet Inc. has been the subject of several financial analyses following its latest earnings report. KeyBanc Capital Markets adjusted its price target for Alphabet’s stock to $220, maintaining its Overweight rating despite the reduction. The firm noted that Alphabet’s earnings and revenue have not changed significantly, with less than 0.2% revisions on revenue and around 1% on EPS.

Morgan Stanley (NYSE:MS) also reduced its price target for Alphabet to $210, while maintaining an Overweight rating. The firm highlighted Alphabet’s significant capital expenditure plans and extensive product pipeline, yet noted a 4% downward adjustment in its forecast for 2026 earnings per share (EPS).

Meanwhile, BofA Securities maintained a positive outlook for Alphabet, reiterating a Buy rating and a $225.00 price target. The firm expressed confidence in the intrinsic value and growth prospects of Alphabet’s core search business, and anticipates a 12-13% growth rate by the year 2025.

Goldman Sachs raised its price target for Alphabet’s stock to $220, maintaining a Buy rating. The firm expressed confidence in Alphabet’s strategic positioning, especially in the context of AI, which is anticipated to play a pivotal role in shaping both the current and future computing landscapes.

On a different note, Intel Corporation (NASDAQ:INTC) faced a potential antitrust investigation by Chinese regulators, according to a Financial Times report. This development is part of a broader revival of antitrust investigations by China’s State Administration for Market Regulation (SAMR), which also includes inquiries into other major US tech firms such as Google and Nvidia (NASDAQ:NVDA).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.