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Investing.com - JMP Securities raised its price target on Alphabet (NASDAQ:GOOGL) stock to $225 from $220 while maintaining a Market Outperform rating following the company’s second-quarter results. According to InvestingPro data, 16 analysts have recently revised their earnings estimates upward, with the stock currently trading near its Fair Value. The company maintains a "GREAT" financial health score of 3.36 out of 5.
Alphabet reported strong Q2 2025 performance with revenue exceeding consensus estimates by 3%, driven by accelerated growth across Search, YouTube, and Cloud segments. The company’s robust 13.07% year-over-year revenue growth has contributed to its impressive $2.32 trillion market capitalization. According to JMP, artificial intelligence was the primary driver behind Search results, with the firm noting that disruption from ChatGPT appears too small to impact performance.
The Cloud segment showed particularly strong momentum, with growth accelerating nearly 4 percentage points to 31.7% year-over-year despite supply constraints. JMP highlighted that Google’s Cloud backlog grew 38% year-over-year, outpacing revenue growth.
While a $1.4 billion legal charge affected headline profitability figures, JMP noted that Alphabet’s operating margins excluding this charge would have reached 40.0%, representing a 160 basis point improvement year-over-year.
JMP expressed some caution about Alphabet’s ability to sustain results in 2026 and beyond, citing potential challenges from ChatGPT’s growing query share and possible antitrust penalties affecting distribution through Chrome and Apple (NASDAQ:AAPL). However, the firm remains positive on Alphabet’s positioning across digital advertising, CTV, cloud computing, and autonomous vehicles. With a P/E ratio of 21.15 and strong return metrics, investors seeking deeper insights into Alphabet’s valuation and growth prospects can access comprehensive analysis through InvestingPro, which offers 12 additional exclusive tips and detailed financial metrics.
In other recent news, Alphabet has been the focus of multiple analyst upgrades following its recent earnings announcements. Evercore ISI raised its price target for Alphabet to $240.00, citing strong second-quarter earnings per share results, with revenue and operating income surpassing expectations. KeyBanc Capital Markets also increased its price target to $230.00, attributing the move to Alphabet’s momentum in artificial intelligence across its business units. Similarly, Jefferies adjusted its price target to $230.00, acknowledging progress in Alphabet’s Cloud and AI initiatives, which have shown significant improvement after initial challenges in 2023.
BMO Capital raised its price target to $225.00, highlighting Alphabet’s robust performance in the second quarter of 2025, which prompted upward revisions to its future estimates. Stifel increased its target to $222.00 following Alphabet’s solid first-quarter results, noting healthy advertising trends in Search and YouTube and better-than-expected performance in the Cloud segment. Overall, these developments reflect growing confidence among analysts in Alphabet’s ability to leverage AI and Cloud technologies effectively.
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