DA Davidson raises Alphabet stock price target to $180 on strong 2Q25 results

Published 25/07/2025, 07:56
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Investing.com - DA Davidson has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $180.00 from $160.00 while maintaining a Neutral rating following the company’s second-quarter earnings report. According to InvestingPro data, analyst targets for Alphabet range from $160 to $250, with 17 analysts recently revising their earnings expectations upward.

The price target increase comes after Alphabet reported better-than-expected results for the second quarter of 2025, with revenue acceleration across all business segments. The company’s robust financial health is reflected in its $371.4 billion revenue over the last twelve months and strong profitability metrics, as shown in InvestingPro’s comprehensive analysis.

DA Davidson noted that Alphabet’s management continues to highlight the positive impact of their "full-stack AI approach," which is driving adoption across the company’s various business lines.

The firm specifically pointed to double-digit growth in Alphabet’s Search business as evidence of the company’s strong performance during the quarter.

Google Cloud growth is also accelerating, according to DA Davidson, further contributing to the company’s overall positive results that prompted the 12.5% increase in price target.

In other recent news, Google has secured a substantial cloud-computing contract with ServiceNow (NYSE:NOW) valued at $1.2 billion over five years, as reported by Bloomberg. This agreement marks a significant achievement for Google Cloud in its competition with Amazon (NASDAQ:AMZN) Web Services and Microsoft (NASDAQ:MSFT) Azure for enterprise clients. Additionally, Alphabet’s second-quarter earnings have drawn positive attention from analysts. Piper Sandler has raised its price target for Alphabet to $220, citing strong search growth and a 14% revenue increase that surpassed expectations. Cantor Fitzgerald has also adjusted its price target to $201 following Alphabet’s solid second-quarter results, highlighting a 12% year-over-year growth in search revenues.

Wedbush has further increased its price target for Alphabet to $225, maintaining an Outperform rating due to the company’s robust quarterly performance. They have updated their third-quarter and 2025 projections, now estimating revenue of $99.1 billion and operating income of $32.7 billion. In other developments, Google has launched a virtual try-on feature for clothing in the United States, expanding its e-commerce capabilities. This tool allows shoppers to visualize apparel on themselves before purchasing, and is now accessible across Google Search, Google Shopping, and Google Images.

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

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