Google’s parent company, Alphabet (NASDAQ: GOOGL), closed on Wednesday at $190.15, marking a drop of $6.97 (3.54%). While the dip reflects some market hesitation, the broader trend tells a different story.
Over the past month, GOOGL has gained 6.8%, and year-to-date, the stock is up a robust 36.25%. Despite recent volatility, Google remains near the upper bounds of its 52-week range, indicating underlying strength even as the S&P 500 (SPY) pushes toward new highs.
GOOGL has traded within a wide range of $163.70 to $201.42 in the past 30 days, the current price sits near the higher end of this band, signaling potential resistance ahead at $190.61. Support is holding firm around $169.92, underpinned by key trend lines.
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While price movements have been choppy, this range-bound behavior suggests that a period of consolidation could precede the next significant move. For now, a cautious approach may be warranted as investors await clearer signals.
Wall Street weighs in on GOOGL stock
Wall Street analysts, however, continue to express confidence in Google’s long-term trajectory. JPMorgan’s Doug Anmuth raised his price target on December 18 to $232, up from $212, while maintaining an Overweight rating.
His revised target represents a potential 22% upside from the current price level. Anmuth’s optimism hinges on Alphabet’s strategic investments in artificial intelligence (AI), particularly as AI applications transition from theoretical promise to practical implementation. He anticipates these investments will drive growth across Google’s core businesses — advertising, cloud services, and software tools.
Anmuth’s view aligns with the broader consensus that Alphabet’s AI-driven initiatives will unlock new revenue streams. Anmuth argues that the company is poised for “increasing returns” as AI enhances ad targeting, boosts cloud efficiency, and streamlines software offerings.
Alphabet’s ad business remains a key driver, with Search and YouTube ads offering sustained growth opportunities. The Google Cloud division, meanwhile, continues to expand, benefiting from AI-driven innovations that attract enterprise clients.
Alphabet’s “Other Bets” — ventures like Waymo’s self-driving technology and Verily’s healthcare solutions — add an element of optionality to the company’s growth narrative. While these projects are not yet significant revenue contributors, they represent potential future catalysts that could support Alphabet’s valuation.
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