Alphabet’s Bright Future: Analysts Boost Price Target
Optimistic Outlook for Search, GCP, and YouTube
BMO Capital has raised the bar for Alphabet, increasing its price target to $230 from $217 and maintaining an Outperform rating on the shares. This move comes on the heels of encouraging channel checks, which suggest significant revenue growth for Search, Google Cloud Platform (GCP), and YouTube.
PMax and Gemini: A Winning Combination
The analysts attribute the improved revenue outlook to the success of PMax, which is driving higher return on ad spend (ROAS) for Search. Additionally, Gemini’s ability to handle complex queries is unlocking new opportunities, expanding Alphabet’s total addressable market (TAM).
GCP Sees Middle-Layer Improvements
Meanwhile, GCP is benefiting from enhancements to its middle layer, thanks to the integration of Gemini and Vertex AI. These advancements are expected to drive further growth for the platform.
YouTube’s QR Codes Prove Popular with Advertisers
YouTube’s lower-funnel QR codes have also been well-received by advertisers, providing a new avenue for revenue growth.
Top Analysts Weigh In
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