Background and Market Reaction
The shares of Alphabet have experienced a recovery after the release of strong business figures for the first quarter of 2025. Analysts expect revenue for this quarter to be $89.22 billion, which corresponds to an increase of 11% compared to the previous year. The net profit is anticipated to be $24.71 billion, also representing an increase.
The Alphabet shares rose by up to 6% in pre-market trading, indicating a positive reception of the business figures by investors. This recovery is noteworthy as the stock had lost about one-fifth of its value since the beginning of 2025.
Price Targets and Analysts’ Opinions
Many analysts still see potential for the stock. Citi and Morgan Stanley have set price targets of $195 and $185, respectively. The average price is around $195, which corresponds to an upside potential of about 29% compared to the last closing price.
Douglas Anmuth and Brad Erickson from RBC praised the progress in AI development. Erickson sees the recovery potential of the stock at 22% to the record high of $207.
Challenges and Opportunities
A ruling from a US district court accusing Google of maintaining illegal monopolies in online advertising could become relevant in the future. However, analysts do not expect significant impacts on the core business. Alphabet’s AI innovations are viewed as key to future growth. These developments could alleviate concerns about the company’s future.
In summary, the stock of Alphabet seems poised to continue rising due to the strong business figures and positive market developments. The AI advancements and robust financial metrics contribute to this optimistic outlook.