JMP reiterates Alphabet stock rating with $250 price target on YouTube strength

Published 18/09/2025, 10:12
JMP reiterates Alphabet stock rating with $250 price target on YouTube strength

Investing.com - JMP Securities maintained its Market Outperform rating on Alphabet (NASDAQ:GOOGL) with a price target of $250.00 on Thursday. The company, currently trading near its 52-week high with a market cap of $3 trillion, appears slightly overvalued according to InvestingPro Fair Value metrics.

The research firm highlighted YouTube’s dual strength as both a brand channel and a performance-driven video platform. JMP noted feedback from a Spotify performance marketer who reported strong results from YouTube campaigns in driving international subscriptions. This success contributes to Alphabet’s impressive revenue growth of ~13% year-over-year, reaching $371.4 billion. InvestingPro analysis reveals 17+ additional insights about Alphabet’s performance and valuation metrics.

The analysis included an observation from a BBC representative who stated that YouTube content viewed on television sets generates CPMs (cost per thousand impressions) in the high teens, while direct viewing through the BBC app commands CPMs exceeding $20.

JMP also reported feedback from a marketer who indicated measurement uncertainty prevented purchasing connected TV (CTV) inventory at higher CPMs, suggesting potential growth limitations in this area.

The firm characterized the transition of performance marketing budgets to connected TV as being in its early stages, implying future growth potential for YouTube’s advertising business in this segment.

In other recent news, PayPal announced a multiyear strategic partnership with Google aimed at transforming commerce across platforms and devices. This collaboration will see PayPal’s payment solutions integrated into Google’s ecosystem, leveraging Google’s AI capabilities to enhance PayPal’s services. PayPal Enterprise Payments will become a key provider for processing card payments across Google Cloud, Google Ads, and Google Play. Meanwhile, Reddit is in early discussions with Google to establish a new content-sharing agreement for deeper integration with Google’s AI products. Alphabet, the parent company of Google, recently reached a market capitalization of $3 trillion for the first time, marking a significant milestone. Citizens JMP maintained its Market Outperform rating and a price target of $250 on Alphabet stock, following YouTube’s successful global NFL game broadcast. In another development, Melius Research raised its price target on Oracle to $370 from $270, citing expectations of accelerating long-term revenue growth driven by AI inferencing capabilities.

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