As Alphabet Inc (NASDAQ: GOOGL), the parent company of Google, gears up for its earnings report this Thursday, Wall Street’s eyes are fixed on the tech giant amidst a backdrop of recent protests and strategic restructuring.
The company is steering resources significantly toward artificial intelligence (AI) infrastructure, reflecting its prioritization of technological advancement.
The stock has already shown promising signs this year, gaining an impressive 12%, and outperforming the S&P 500‘s rise of 5.1%. This upward trajectory is attributed to Alphabet’s consistent revenue growth and strategic shifts within the company.
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Google earnings report
Last week’s announcement by CFO Ruth Porat of a restructuring in the finance department—which includes layoffs and relocations—underscores a broader pivot toward AI, which could redefine operational efficiencies and future growth paths.
Adding to the internal changes, the recent dismissal of 28 employees signals a tightening of operations, a move that could streamline Alphabet’s focus on core and emerging technologies.
Alphabet has been on a steady climb, with first-quarter revenues expected to rise by 13%, marking a continuation of growth from previous quarters. This follows a period of slower growth in mid-2022 through mid-2023, when advertising spend waned due to high inflation and interest rate hikes.
Google stock price analysis
From a technical perspective, GOOG’s stock chart exhibits a bull flag pattern, suggesting potential upward momentum.
The stock has found support at $157.61, with resistance noted between $159.20 and $160.80.
For investors, this setup could present a favorable entry point, with a stop loss advised just below the support level.
GOOGL stock price target
Looking ahead, Wall Street analysts have set a 12-month price target for Alphabet’s Class C shares at an average of $168.64, with a high of $185.00 and a low of $160.00. This represents a potential increase of 6.77% from its current level.
Recent upward adjustments in price targets from analysts at Truist Securities and KeyBanc reflect a bullish sentiment, driven by strong user engagement and advertising growth, particularly in search and social platforms.
Notably, analysts from Truist Securities recently elevated their price target for Alphabet to $170 from $158, maintaining a buy rating. This revised target reflects a positive outlook driven by sustained user engagement and growth in advertising revenue, particularly from search and social platforms.
KeyBanc analysts have also adjusted their outlook on Alphabet, raising their price target to $175 from $165 while maintaining an overweight rating. The revision follows CFO Ruth Porat’s strategic shift, highlighting KeyBanc’s confidence in Alphabet’s new direction and its potential impact on financial performance.
Moreover, with Alphabet exploring cost discipline, expanding its autonomous driving unit Waymo, and potentially introducing a dividend under new financial leadership, there are multiple catalysts that could further propel the stock upward.
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