Wall Street has gone hot and cold on tech this year, with many of the market's stocks soaring in the first half of 2023 as excitement over artificial intelligence (AI) increased. However, the Nasdaq-100 Technology Sector index tumbled 6% since the start of August, when multiple c
Futures for Wall Street's main stock indexes rose on Thursday as Treasury yields eased, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
The three major indexes have rallied since the start of the year, offering us hope that we're moving closer and closer to the next bull market. After all, history shows us bear markets always lead to periods of market expansion. And that could lift shares of companies that are gr
Run off their virtual feet at the start of India's festival season, e-commerce companies like Amazon and Walmart owned Flipkart are looking forward to a potentially record breaking few weeks.
Despite the ongoing
antitrust trial and macro uncertainty, shares of Google parent Alphabet (
NASDAQ:GOOGL
,
GOOG
) have risen
more than 59% so far this year. Several analysts have recently expressed optimism about the company’s continued growth, supported by generative
artificial intelligence (AI)-induced opportunities, continued innovation, and Google’s leadership in the Search space.
Analysts Optimistic About GOOGL’s Growth Potential
Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (
NASDAQ:AAPL
) and several other companies to maintain its dominance as the leading internet search engine and thwart competition.
While
Monness analyst Brian White acknowledges the presence of regulatory headwinds and a dynamic competitive landscape, he reiterated a Buy rating on GOOGL stock with a price target of $160 on October 5 following the company’s “Made by Google” event. White noted that the company infused its new Pixel offerings with AI-powered experiences.
At the event, the company unveiled the Google Pixel 8 and Pixel 8 Pro smartphones, which are powered by the new Google Tensor G3 chip and have more AI capabilities. Alphabet also launched Google Watch 2 with advanced health tracking features supported by AI.
“Given Google’s storied history developing AI innovations, we believe the company has an opportunity to differentiate itself in mobile devices,” said White.
Like White,
Goldman Sachs analyst Eric Sheridan also reacted positively to the “Made by Google” event. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Sheridan reiterated a Buy rating on Alphabet stock with a price target of $154.
Another GOOGL bull,
Bank of America analyst Justin Post, reaffirmed a Buy rating on GOOGL stock on October 4 and increased the price target to $146 from $142. Post said that
Statcounter's data revealed that Google's search market share declined slightly (27 basis points month-over-month and 84 basis points year-over-year) to 91.6% in September, but continues to be relatively stable since
OpenAI’s ChatGPT was launched in late 2022.
He added that the market share of Microsoft’s (
NASDAQ:MSFT
) Bing Search engine fell 2 basis points month-over-month and 44 basis points year-over-year to 3% in September.
Post thinks that AI will be incrementally positive to Google's ad revenue in the second half of the year, fueled by the growing advertiser adoption of the Performance Max suite and the ramp of AI-driven offerings like dynamic keyword campaigns. With search growth accelerating, the analyst anticipates Google’s search business to enjoy solid margin leverage in the second half of 2023. Moreover, he expects cost efficiencies to drive upside to analysts’ estimates in 2024.
What is the Target Price of GOOGL Stock?
With 31 Buys and four Holds,
Google stock scores Wall Street’s Strong Buy consensus rating. The average price target of $150.85 implies 7.3% upside.
Conclusion
Several analysts recently reaffirmed their bullish stance on GOOGL stock due to AI-led prospects. In fact, in a research note on Tuesday,
Wedbush analyst Daniel Ives said that his firm's proprietary generative AI survey identified Microsoft and Google as the early leaders in the AI race. Overall, Wall Street remains optimistic about GOOGL stock, backed by continued innovation, search engine dominance, growth potential in the cloud, and robust AI opportunities.
Disclosure
Despite the ongoing
antitrust trial and macro uncertainty, shares of Google parent Alphabet (
NASDAQ:GOOGL
,
GOOG
) have risen
more than 59% so far this year. Several analysts have recently expressed optimism about the company’s continued growth, supported by generative
artificial intelligence (AI)-induced opportunities, continued innovation, and Google’s leadership in the Search space.
Analysts Optimistic About GOOGL’s Growth Potential
Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (
NASDAQ:AAPL
) and several other companies to maintain its dominance as the leading internet search engine and thwart competition.
While
Monness analyst Brian White acknowledges the presence of regulatory headwinds and a dynamic competitive landscape, he reiterated a Buy rating on GOOGL stock with a price target of $160 on October 5 following the company’s “Made by Google” event. White noted that the company infused its new Pixel offerings with AI-powered experiences.
At the event, the company unveiled the Google Pixel 8 and Pixel 8 Pro smartphones, which are powered by the new Google Tensor G3 chip and have more AI capabilities. Alphabet also launched Google Watch 2 with advanced health tracking features supported by AI.
“Given Google’s storied history developing AI innovations, we believe the company has an opportunity to differentiate itself in mobile devices,” said White.
Like White,
Goldman Sachs analyst Eric Sheridan also reacted positively to the “Made by Google” event. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Sheridan reiterated a Buy rating on Alphabet stock with a price target of $154.
Another GOOGL bull,
Bank of America analyst Justin Post, reaffirmed a Buy rating on GOOGL stock on October 4 and increased the price target to $146 from $142. Post said that
Statcounter's data revealed that Google's search market share declined slightly (27 basis points month-over-month and 84 basis points year-over-year) to 91.6% in September, but continues to be relatively stable since
OpenAI’s ChatGPT was launched in late 2022.
He added that the market share of Microsoft’s (
NASDAQ:MSFT
) Bing Search engine fell 2 basis points month-over-month and 44 basis points year-over-year to 3% in September.
Post thinks that AI will be incrementally positive to Google's ad revenue in the second half of the year, fueled by the growing advertiser adoption of the Performance Max suite and the ramp of AI-driven offerings like dynamic keyword campaigns. With search growth accelerating, the analyst anticipates Google’s search business to enjoy solid margin leverage in the second half of 2023. Moreover, he expects cost efficiencies to drive upside to analysts’ estimates in 2024.
What is the Target Price of GOOGL Stock?
With 31 Buys and four Holds,
Google stock scores Wall Street’s Strong Buy consensus rating. The average price target of $150.85 implies 7.3% upside.
Conclusion
Several analysts recently reaffirmed their bullish stance on GOOGL stock due to AI-led prospects. In fact, in a research note on Tuesday,
Wedbush analyst Daniel Ives said that his firm's proprietary generative AI survey identified Microsoft and Google as the early leaders in the AI race. Overall, Wall Street remains optimistic about GOOGL stock, backed by continued innovation, search engine dominance, growth potential in the cloud, and robust AI opportunities.
Disclosure
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