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Investing.com - Truist Securities raised its price target on Alphabet (NASDAQ:GOOGL) stock to $225.00 from $200.00 while maintaining a Buy rating. Currently trading at $192.17, Alphabet’s stock has delivered a 15.44% return over the past year. According to InvestingPro data, 27 analysts have recently revised their earnings estimates upward for the upcoming period.
The price target increase follows what Truist described as "solid execution across the board" in Alphabet’s second-quarter results, which showed sustained traction across Search, YouTube and Cloud services without any apparent adverse impact from rising AI competition or macroeconomic uncertainty. The company’s strong performance is reflected in its 13.13% revenue growth and robust financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis framework.
Truist noted higher engagement and ad monetization within Alphabet’s AI Overview (AIO) search features, along with similar positive trends in YouTube Shorts, which the firm believes are sustainable into the second half of 2025 despite tough year-over-year comparisons in financials and YouTube political spending from last year. Trading at a P/E ratio of 20.28, the stock appears reasonably valued relative to its near-term earnings growth potential.
The research firm emphasized that Google "remains at the bleeding edge of the AI race which remains the company’s to lose," suggesting Alphabet maintains its leadership position in artificial intelligence development.
Truist concluded that AI will ultimately expand the total addressable market for Search and Cloud services, fueling longer-term growth for Alphabet and driving its stock price higher.
In other recent news, Alphabet reported impressive second-quarter 2025 results, with revenue growth across all business segments. Piper Sandler noted a 14% revenue growth for the quarter, exceeding Street expectations by about 3%, and raised its stock price target to $220 while maintaining an Overweight rating. Similarly, Cantor Fitzgerald increased its price target for Alphabet to $201, highlighting the company’s revenue and earnings per share surpassing expectations by 3% and 6%, respectively. DA Davidson also raised its price target to $180, citing the strong earnings report but kept a Neutral rating.
Additionally, Google secured a significant $1.2 billion cloud-computing deal with ServiceNow (NYSE:NOW) over five years, enhancing its competitive position against Amazon (NASDAQ:AMZN) Web Services and Microsoft (NASDAQ:MSFT) Azure. In another development, Google launched a virtual try-on feature for clothing in the United States, expanding its digital shopping capabilities across various platforms. These recent developments reflect Alphabet’s strategic growth and innovation efforts in multiple areas.
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