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Investing.com - Wolfe Research has reiterated an Outperform rating and $190.00 price target on Alphabet (NASDAQ:GOOGL) stock ahead of the company’s second-quarter earnings report scheduled for Tuesday. According to InvestingPro data, 12 analysts have recently revised their earnings estimates upward, with price targets ranging from $160 to $250.
The research firm noted that while it would "skew long into the print," it cautioned that there might be limited follow-through as market focus could shift to the upcoming Search ruling expected in August.
Alphabet shares have outperformed the S&P 500 by 1 percentage point since the company’s last earnings release on April 24, driven by an improving advertising environment, artificial intelligence narrative around Gemini models, and what Wolfe Research described as a "friendly setup."
Wall Street estimates for Alphabet’s Q2 results project Search revenue growth of 9% year-over-year, YouTube revenue growth of 8%, and Cloud revenue growth of approximately 26%.
Wolfe Research also indicated it would be listening for updates on AI mode and AI overview monetization during the earnings call, while noting that any additional metric disclosures beyond clicks growth might come during the Q3 earnings call or later rather than in Tuesday’s report.
In other recent news, Alphabet has been in the spotlight with several key developments. BofA Securities raised its price target for Alphabet to $210, citing increased revenue and earnings estimates for the second quarter, with projected revenue of $81 billion and earnings per share of $2.21. Similarly, Morgan Stanley (NYSE:MS) also increased its price target to $205, maintaining an Overweight rating and highlighting Alphabet’s innovation and productization. Evercore ISI reiterated an Outperform rating, expecting Alphabet to exceed Wall Street’s revenue growth estimates for the second quarter. Additionally, Alphabet received preliminary court approval for a settlement in a stockholder derivative action, with no financial details disclosed. In other company news, Waymo, Alphabet’s self-driving unit, expanded its service area in Austin, Texas, to 90 square miles, enhancing its competitive stance in the autonomous vehicle sector. Waymo has also achieved a milestone of 100 million miles driven without human intervention. These developments reflect Alphabet’s ongoing efforts to innovate and expand its market presence.
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