Stifel Raises Alphabet Price Target to $395
Stifel analyst Mark Kelley raised the price target on Alphabet (NASDAQ: GOOGL) to $395.00 (from $346.00) while maintaining a Buy rating.
“GOOGL put up a marquee quarter highlighted by a signficant Cloud beat (+48% y/y vs.
“high 30% bogey”) with a view of continued growth as GCP backlog was +55% sequentially, paired with healthier advertising revenue despite a lighter YouTube quarter (due to lapping U.S. political).
Gemini progress remains consistent with 750mn MAUs now using the Gemini App and commentary that supports a robust software ecosystem utilizing LLMs at the enterprise level, all while driving costs down significantly over the last year+.
The Capex guide ($180bn at the midpoint), came well ahead of the bogeys we heard of roughly $130-135bn heading into the print (which seemed to perhaps ratchet higher than those levels over the last few days), but as I write this, the stock is essentially unchanged.
This, to us, suggests continued investor comfort that Google is an AI winner over the long-term, and we couldn’t agree more. Reiterate Buy.”
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