Alphabet Stock Rides Earnings To 15-Month High—Here's Why Some Analysts Expect It To Surge Nearly 30% More - Forbes

Topline

Alphabet had its best day on the stock market in nearly six months Wednesday as investors largely cheered on the Google parent’s latest quarterly results, leading several Wall Street analysts to predict the stock will soar to its highest level ever.

Key Facts

Shares of Alphabet rallied more than 7% to $130 by early afternoon, on pace for their best day in over five months and hitting their highest level since April 20, 2022.

The company’s earnings report released late Tuesday beat analyst estimates for profit and revenue, and included bullish language from leadership on the company’s prospects in the artificial intelligence space, an area where some hypothesized Alphabet had fallen far behind rival Microsoft.

More than a dozen analysts upgraded their price target for Alphabet stock to $150 or higher following earnings, per FactSet, which would be the highest price in the stock’s 19-year history.

Among the most bullish on Alphabet was Jefferies analysts led by Brent Thill, who raised their target for the stock from $150 to $165 and declared Alphabet proved it won’t be a “generative AI casualty.”

Jefferies’ rating implies 27% upside and predicting the company’s market capitalization will surge past $2 trillion for the first time in its history.

Crucial Quote

Alphabet is a “quality company rebutting AI fears” Rosenblatt analyst Barton Crockett wrote Wednesday, raising his target for the stock from $132 to $163 after Alphabet proved competitors’ AI gains have yet to impact profit margins or search, contrary to early fears.

Contra

Microsoft and Snap, two other major companies to report earnings after the bell Tuesday, each suffered sizable stock losses Wednesday, as Microsoft dipped 4% and Snap plunged 19%. The tech-heavy Nasdaq fell slightly despite Alphabet’s ascent.