Needham Raises Alphabet Price Target to $450

Needham analyst Laura Martin raised the price target on Alphabet (NASDAQ: GOOGL) to $450.00 (from $400.00) while maintaining a Buy rating.

“Most interesting (to us) were GOOGL’s comments about collapsing the purchase funnel by using AI Answers.

GOOGL stated that its goal is to capture the entire customer journey through AI Answers and AI Mode, from discovery to purchase.

AI Mode allows users to “review product recommendations, compare options and complete fast payment”. This vision directly targets AMZN’s core eCommerce business.

If successful, GOOGL’s revs should accelerate owing to: a) faster ad rev growth since GOOGL’s ads would capture discovery, consideration and purchase; plus b) rev shares from actual product sales.”

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