Tigress raises Alphabet stock price target to $240

On Wednesday, Tigress Financial Partners maintained a Strong Buy rating on Alphabet stock (NASDAQ:GOOGL), currently trading at $157.51, and increased its price target to $240.00. As a $1.91 trillion market cap giant, Alphabet’s continued innovation and integration of artificial intelligence (AI) are cited as key drivers for growth in advertising and cloud monetization, which are expected to enhance revenue and shareholder value. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

Alphabet’s use of AI is expanding across its product lines, including Search, YouTube, Google Cloud, Workspace, and Android. This integration is anticipated to boost user engagement, productivity, and product adoption. With a strong revenue growth of 13% and robust financial health score rated as "GREAT" by InvestingPro, Tigress Financial Partners highlighted the company’s recent acquisition of cloud security firm Wiz as a strategic move that bolsters Alphabet’s cloud-based security offerings and strengthens its competitive position in the cloud sector.

The analyst from Tigress Financial Partners emphasized that Alphabet’s robust balance sheet and cash flow are instrumental in supporting key growth initiatives. The company’s strong financial position is evidenced by its healthy cash reserves exceeding debt levels and impressive return on equity of 35%. These financial resources enable the tech giant to pursue strategic acquisitions and enhance shareholder returns through share repurchases and potential dividend increases.

Alphabet’s commitment to AI innovation and its positive business performance trends have secured its place on Tigress Financial Partners’ Research Focus List and in their Focus Opportunity (SO:FTCE11B) Portfolio. Trading at a P/E ratio of 17.65, the firm’s analysts predict that Alphabet’s ongoing AI advancements will continue to drive the company’s growth in digital advertising and market share gains in other key product lines. For deeper insights into Alphabet’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which offers 12 additional ProTips and extensive financial metrics.

In other recent news, Alphabet Inc. reported first-quarter results that exceeded expectations, with advertising revenue climbing 8.5% to $66.89 billion, surpassing analysts’ forecasts. This strong performance in Alphabet’s advertising business, driven by investments in artificial intelligence, has positively impacted social media stocks, with Meta Platforms (NASDAQ:META) and Pinterest (NYSE:PINS) seeing significant rises. Citi analysts raised Alphabet’s price target to $200 from $195, citing resilience in search ads and advancements in AI as key growth drivers. Meanwhile, Rosenblatt Securities adjusted Alphabet’s price target down to $189 from $205, maintaining a Neutral rating due to concerns over macroeconomic risks and legal challenges. Tesla (NASDAQ:TSLA), part of the Magnificent Seven, increased its prices in Canada and urged buyers to purchase before counter-tariffs on US-made vehicles take effect. Nvidia (NASDAQ:NVDA) faced a slight decline in shares as Huawei prepares to test a new AI processor that could replace some of Nvidia’s products. These developments reflect a dynamic period for major tech companies, with varied analyst perspectives and strategic moves shaping the market landscape.

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