Is Alphabet's Stock Heading to $225 as Predicted by Wall Street Analyst?

Tuesday, 30 April 2024, 10:57

Alphabet's stock price has surged by 60% in the past year due to strong revenue growth in advertising and cloud computing, catching the attention of analysts. Susquehanna's Shyam Patil raised Alphabet's price target to $225 based on robust first-quarter performance and positive outlook. Despite a spike in share prices, Alphabet remains a reasonable buy for long-term investors given its forward earnings multiples and financial strength.

https://store.livarava.com/7b79361f-06e2-11ef-a6c0-63e1980711b2.jpg — Is Alphabet's Stock Heading to $225 as Predicted by Wall Street Analyst?

Why Wall Street's bullish for Alphabet

Alphabet continues to impress with its revenue growth in advertising and cloud computing, outperforming market expectations.

Total Revenue Surge

Total first-quarter revenue hit a record-breaking $80.5 billion, reflecting a 15% increase year-over-year.

Advertising Strength

First-quarter Google advertising sales surged 13% year-over-year, indicating a positive trend in the ad industry.

Cloud Computing Success

Despite a reduced workforce, Alphabet's cloud sales rose 28% year-over-year, reaching $9.6 billion with an operating profit of $900 million, a new company record.

Is Alphabet a Good Investment?

Analyst Patil's $225 price target for Alphabet seems justified, given the company's sensible valuation and promising long-term potential.

Financial Strength

Declaring a dividend and additional $70 billion in buybacks, Alphabet's move signals confidence in its future performance.

Potential for Investors

Consider the 10 stocks recommended by Stock Advisor for possible higher returns, although Alphabet wasn't included in their selection.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.