Background and Expectations
Alphabet shares, which had suffered significant losses since the beginning of 2025, show a marked recovery following the release of the positive business figures for the first quarter of 2025. This development is driven by several factors:
- Business Figures: Alphabet reported a revenue of approximately $89.22 billion in the first quarter of 2025, which represents an increase of 11% compared to the previous year. The net profit was listed at $24.71 billion, which corresponds to earnings per share of $2.01.
- Analyst Opinions: Most analysts recommend the stock as a buy or consider it equivalent. The average price target is around $195, representing an upside potential of about 29% compared to the last closing price.
Current Developments
- Stock Recovery: Pre-market, Alphabet’s A-shares rose by up to 6%, indicating investors’ confidence in the company’s ability to recover from recent challenges.
- AI Innovations: The development of AI innovations, particularly at Google, is seen as a positive factor. Analysts like Douglas Anmuth highlight advances in this area, strengthening the potential for further recovery.
- Legal Challenges: Despite the positive news, a recent ruling by a US district court, which accuses Google of maintaining illegal monopolies in the online advertising sector, could play a role in the future. However, analysts do not expect any significant impact on the core business.
Outlook
The recovery of Alphabet stocks may be an indicator of growing investor confidence in the technology stock. The positive business figures and advancements in AI technology help alleviate concerns about the company’s future. Nevertheless, the stock remains below its record high for the year, offering further recovery potential.