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Investing.com - TD Cowen has raised its price target on Alphabet (NASDAQ:GOOG) stock to $240.00 from $220.00 while maintaining a Buy rating. The tech giant, currently trading at $229.42, has demonstrated robust performance with a 34.3% return over the past year and maintains a strong financial position with more cash than debt on its balance sheet.
The research firm cited Google’s ability to counter threats from AI chatbots like ChatGPT through its "massive scale & tech DNA," supported by proprietary survey data showing solid user adoption of AI Overviews and AI Mode features.
TD Cowen’s analysis included bottom-up forecasts for ChatGPT and Gemini app users and prompts, along with an updated Google Search model and sensitivity analysis.
The firm acknowledged that Google Search faces an "innovator’s dilemma" with the emergence of generative AI chatbots but expressed confidence that Alphabet can maintain search leadership while advancing in generative AI despite competition from OpenAI and others.
TD Cowen noted that Alphabet possesses "similar or better GenAI technology vs competing upstarts" and operates as "an established and leading AI company at its core."
In other recent news, Alphabet has been the focus of several significant developments. The company received favorable rulings in its antitrust case, where a U.S. District Court decided against imposing structural remedies. Instead, the court opted for moderate restrictions, allowing Alphabet to continue certain business practices while implementing data-sharing obligations. This decision was seen as a win for Alphabet, as it does not require the divestiture of its Chrome browser, a key concern for the Department of Justice.
Additionally, Alphabet’s stock price target was raised by JPMorgan to $260 and by BofA Securities to $252, both maintaining positive ratings on the stock. These upgrades followed the court’s decision, which analysts viewed as beneficial for the tech giant. In another development, Alphabet’s Waymo announced plans to launch its autonomous vehicle service in Denver this fall, expanding its reach with a mixed fleet. Furthermore, Alphabet will continue its revenue-generating arrangement with Apple, maintaining its position as the default search engine on Safari, albeit with some new limitations on exclusivity and contract terms.
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