Amazon jumps 5% after AWS and OpenAI announce $38B partnership
Investing.com - Evercore ISI raised its price target on Alphabet (NASDAQ:GOOGL) stock to $325.00 from $300.00 on Thursday, while maintaining an Outperform rating following the company’s third-quarter earnings report. The new target represents potential upside from the current price of $274.57, with Alphabet trading near its 52-week high of $275.34. According to InvestingPro data, analyst price targets for the stock range from $185 to $340.
Alphabet reported revenue of $102 billion, representing 15% growth excluding foreign exchange effects, which exceeded analyst expectations by 3%. Operating income reached $34.7 billion, excluding a one-time charge, with a 33.9% margin that beat Street estimates by 7%. This performance aligns with Alphabet’s impressive 13.13% revenue growth over the last twelve months, bringing total revenue to $371.4 billion for that period.
The technology giant demonstrated acceleration across all key revenue segments, including Google Search, YouTube Ads, and Cloud services. Search performance was particularly notable, with the company experiencing what Evercore ISI described as an "expansionary moment" driven by artificial intelligence. InvestingPro identifies Alphabet as a prominent player in the Interactive Media & Services industry, with a 5-year revenue CAGR of 17% demonstrating consistent long-term growth.
AI implementation has fueled accelerating query growth, translating to 7% year-over-year growth in paid clicks—the fastest rate since 2023. This growth reflects the positive impact of AI integration into Google’s core search business. With a PEG ratio of 0.77, Alphabet is trading at a low P/E ratio relative to its near-term earnings growth potential, suggesting the market may still be adjusting to the company’s AI-driven growth trajectory.
Google Cloud Platform (GCP) showed strong momentum with accelerating revenue growth, expanding margins, and an 82% year-over-year increase in backlog to $155 billion. Evercore ISI noted that GCP benefits from being "the only hyperscaler with a full-stack approach to AI" spanning infrastructure, research, models, and products. Alphabet’s financial strength supports this expansion, with InvestingPro data showing the company holds more cash than debt on its balance sheet and an overall financial health score rated as "GREAT." Discover comprehensive analysis of Alphabet and 1,400+ other top stocks through InvestingPro’s detailed Research Reports, transforming complex financial data into actionable investment intelligence.
In other recent news, Alphabet reported a 16% revenue growth in the third quarter of 2025, surpassing analysts’ expectations. Piper Sandler, Truist Securities, and Goldman Sachs have all raised their price targets for Alphabet, citing strong performance in the company’s Search, YouTube, and Cloud segments. Piper Sandler increased its target to $330, while Truist Securities set it at $320, and Goldman Sachs also raised it to $330, maintaining their respective Overweight and Buy ratings. These upgrades highlight the robust growth in Alphabet’s advertising market and cloud services.
Additionally, Alphabet announced a new partnership with the United Service Organizations (USO) to support military families. The collaboration will utilize Google’s AI-powered 3D video communication platform, Google Beam, to connect families during deployments. This initiative is set to begin in 2026, aiming to reduce the distance for service members during long separations. These developments reflect Alphabet’s ongoing expansion and innovation efforts across various sectors.
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