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Investing.com - Truist Securities has maintained its Buy rating and $200.00 price target on Alphabet (NASDAQ:GOOGL) ahead of the company’s second-quarter 2025 earnings report, scheduled for July 29. According to InvestingPro data, the stock is currently trading at an attractive PEG ratio of 0.52, suggesting potential undervaluation relative to its growth prospects.
The research firm expects Alphabet to report results largely in line with consensus estimates, driven by strong user engagement across Search and YouTube, along with sustained performance in its Cloud division.
Truist Securities noted that despite macroeconomic uncertainty, tariff concerns, and increasing competition from AI-powered search alternatives, Google’s core search business remains robust.
The weakening U.S. dollar is expected to create a favorable foreign exchange environment for Alphabet, potentially providing upside to the company’s financial results.
While concerns about AI evolution in search and regulatory pressures have affected Alphabet’s stock performance, Truist Securities believes the current valuation already reflects many of these concerns and maintains that "AI Search remains Google’s war to lose." For deeper insights into Alphabet’s valuation and comprehensive financial analysis, access the full Pro Research Report available exclusively on InvestingPro.
In other recent news, Alphabet Inc. has announced several significant developments. The company reported a strategic move in its energy sector by signing a deal with Commonwealth Fusion Systems to purchase 200 megawatts of fusion power, marking the first corporate power purchase agreement for this technology. This agreement aligns with Google’s clean energy initiatives and reflects its ongoing investment in sustainable energy solutions. Additionally, Alphabet’s stock rating was upgraded by Citizens JMP from Market Perform to Market Outperform, with a price target set at $220.00. The firm cited Alphabet’s advancements in AI, specifically the growth of AI Overviews, as a positive factor influencing this upgrade.
In response to antitrust pressures from the European Union, Alphabet has proposed changes to its Google search results to address concerns about preferential treatment of its services. The company plans to discuss these proposals at an upcoming meeting with EU officials and competitors. Moreover, Google’s DeepMind has launched AlphaGenome, an AI tool designed to analyze genetic variations in human DNA, which could advance research in disease understanding and synthetic biology. DA Davidson reiterated its Neutral rating on Alphabet, highlighting the potential value of a company breakup to better evaluate its diverse technology portfolio. These recent developments reflect Alphabet’s ongoing efforts to innovate and adapt in a rapidly evolving market landscape.
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