Alphabet stock (NASDAQ:GOOG)(NASDAQ:GOOGL) is trading lower Thursday after the company beat analyst estimates for the fourth quarter. Analysts recognize a potential buying opportunity and are mostly raising their price targets on the Google and YouTube parent company.
The Alphabet Analysts
- Bank of America analyst Justin Post maintained a Buy rating on Alphabet with a price target of $370.
- Needham analyst Laura Martin maintained a Buy rating and raised the price target from $330 to $400.
- JPMorgan analyst Doug Anmuth maintained an Overweight rating and raised the price target from $385 to $395.
- Rosenblatt analyst Barton Crockett maintained a Neutral rating and raised the price target from $279 to $357.
- KeyBanc analyst Justin Patterson maintained an Overweight rating and raised the price target from $360t $370.
- Scotiabank analyst Nat Schindler maintained a Sector Outperform rating and raised the price target from $375 to $400.
- Wedbush analyst Scott Devitt maintained an Outperform rating and raised the price target from $360 to $370.
Bank of America on GOOGL
Strength of Gemini is driving Google Search and Cloud acceleration, Post said in a new investor note.
“We think more to come with model improvements and capacity growth,” Post said.
The analyst said the “Gemini halo effect” is shining bright for Alphabet.
“We continue to see opportunity for better monetization of zero-click searches that are being converted to AI Overviews as a key upside driver from here.”
Post said the monetization of the Gemini app, with 750 million monthly active users, is a future revenue catalyst.
Needham on GOOGL
Martin said there were pros and cons to Alphabet’s fourth quarter results that had “strong revenue momentum.”
The analyst said operating expenses grew faster than …