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Investing.com - Piper Sandler has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $220.00 from $195.00 while maintaining an Overweight rating following the company’s second-quarter earnings report. The tech giant, currently trading at $193.56 with a market capitalization of $2.36 trillion, maintains a "GREAT" financial health score according to InvestingPro analysis.
The research firm cited Alphabet’s impressive second-quarter performance, which showed approximately 14% revenue growth, accelerating about 2% from the first quarter of 2025. This result exceeded Street expectations by roughly 3%, while EBITDA came in approximately 5% better than anticipated. The company’s revenue reached $371.4 billion in the last twelve months, with a robust gross profit margin of 59%.
Piper Sandler highlighted strong results in both Cloud and Search segments, with Search accelerating and paid clicks moving to 4%. The firm noted that management expects capital expenditures to ramp up through the second half of 2025.
Despite the increased capital expenditure outlook potentially dampening free cash flow prospects, Piper Sandler expressed confidence in Alphabet’s momentum in Cloud, growing Waymo opportunities, and accelerating Gemini adoption.
Following the earnings report, Piper Sandler adjusted its fiscal year 2026 revenue and EBITDA estimates upward by 2%, supporting the new $220 price target. Notably, 17 analysts have revised their earnings estimates upward, with analyst targets ranging from $160 to $250. For deeper insights and additional ProTips about Alphabet’s valuation and growth prospects, check out the comprehensive research available on InvestingPro.
In other recent news, Alphabet reported impressive second-quarter results, with total revenues and earnings per share surpassing Wall Street expectations by 3% and 6%, respectively. This performance was bolstered by a 12% year-over-year growth in Search revenues, outpacing prior forecasts. Following these results, several analyst firms have adjusted their price targets for Alphabet. Cantor Fitzgerald raised its target to $201, maintaining a Neutral rating, while UBS increased its target to $202, also keeping a Neutral stance. Wedbush and JMP Securities both raised their targets to $225, with Wedbush maintaining an Outperform rating and JMP citing strong AI-driven results. Additionally, Alphabet has launched a virtual try-on feature for clothing in the United States, now available across Google Search, Google Shopping, and Google Images. This tool was initially introduced as an experiment during Google’s I/O event in May. These developments reflect Alphabet’s continued innovation and financial strength.
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