Alphabet’s recent financial results for the first quarter of 2025 have significantly exceeded analysts’ expectations, leading to a substantial increase in price targets for the stock. Here are the key points that influenced this development:
Financial Results Q1 2025
- Revenue: Alphabet reported revenue of $90.23 billion, reflecting a 12% increase from the previous year and exceeding expectations of $89.1 billion.
- Profit: Profit increased by 46% to $34.54 billion, with EPS at $2.81, which is 40% above expectations. Without an unrealized capital gain from investments, the EPS would have been $2.16.
- Operating Profit and Margin: Operating profit rose by 20% to $30.6 billion, and the operating margin reached 33.9%, marking a new high.
Growth Trends
- Advertising and YouTube: Search advertising grew by 10%, and YouTube also saw growth of 10%, although this is below previous rates.
- Cloud and Subscriptions: Strong growth was also recorded in these areas.
Analyst Reactions
- Price Targets Raised: Several analysts have significantly raised their price targets for Alphabet as the company has exceeded expectations.
- Optimism: Analysts are optimistic about Alphabet’s potential, particularly through AI growth and a recovery in Google search.
These developments are of great interest to investors as they underline Alphabet’s potential and its ability to navigate economic uncertainties. The raising of price targets reflects the heightened enthusiasm on Wall Street and could positively influence the market performance of the stock.