Street Calls of the Week
Investing.com - Piper Sandler has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $285.00 from $220.00 while maintaining an Overweight rating. The stock is currently trading near its 52-week high of $253.04, with an impressive year-to-date return of 32%.
The significant price target increase represents approximately a 30% upside from current trading levels for the Google parent company.
Piper Sandler expressed continued bullishness on Alphabet, though the firm recently changed its top Large Cap pick to Meta.
The research firm noted that Search has the potential to re-accelerate in 2026, which could drive future growth for the technology giant.
Piper Sandler did express some concern about rising capital expenditures, particularly if interest rates continue to decline, but acknowledged Alphabet’s continued execution and new ad product launches like AI Max for Search Campaigns.
In other recent news, Alphabet, the parent company of Google, has reached a market capitalization of $3 trillion for the first time, marking a significant milestone for the tech giant. This development places Alphabet among an elite group of tech companies to achieve such a valuation. Meanwhile, JMP Securities has maintained its Market Outperform rating on Alphabet, citing the strength of YouTube as both a brand and performance-driven video platform, with a price target of $250.
In another strategic move, PayPal announced a multiyear partnership with Google. This collaboration aims to integrate PayPal’s payment solutions throughout Google’s ecosystem, enhancing services with Google’s AI capabilities. Additionally, Reddit is in early discussions with Google to establish a deeper AI content partnership, seeking to maximize the value of its data in search results and AI training.
Furthermore, Google has announced significant investments in Africa’s digital infrastructure, exceeding its 2021 pledge of $1 billion. The company plans to establish four subsea cable connectivity hubs across the continent, which is expected to create new digital corridors within Africa and beyond.
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