Alphabet Inc. (NASDAQ:GOOGL) has emerged as a prominent player among the AI Stocks that Investors are Watching. On October 8, analyst John Blackledge from TD Cowen elevated the price target for the stock from $270.00 to $280.00, affirming a Buy rating.
The firm’s insights based on their third-quarter digital advertising call on October 2nd indicate that Alphabet’s Search growth remains robust even amidst broader economic uncertainties. Additionally, they are projecting considerable growth in Cloud services this quarter.
TD Cowen’s estimate for third-quarter net revenue suggests a 14.6% year-over-year increase, exceeding consensus by 0.7%. Furthermore, their operating income and earnings per share projections (excluding the antitrust fine) are also above market estimates, at 4% and 6% respectively.
The firm plans to monitor the company’s progress in Generative AI initiatives closely.
“We will be looking for further developments regarding Alphabet’s Generative AI efforts, especially the ongoing rollout of AI Mode. We’ve made slight adjustments to our long-term estimates (FY 2025 estimates remain unchanged); our new price target is $280, and we maintain our Buy recommendation.”
Alphabet Inc. (NASDAQ:GOOGL) is an American global technology conglomerate that wholly owns the prominent internet company Google, among various other ventures.
While we recognize the investment potential that GOOGL presents, we believe that other AI stocks may offer enhanced upside potential with lower downside risk. For those interested in discovering an undervalued AI stock poised to benefit from recent economic trends, check out our complimentary report on the top short-term AI stock.
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