Citi analysts have reiterated a Buy rating for Alphabet (GOOG, Financial), setting a price target of $200. Although the tech giant saw a decline in Google Search volumes on Apple's Safari browser in April, this shift was attributed to growing usage of AI-powered search alternatives like ChatGPT and Perplexity AI. Moreover, Apple's Eddy Cue hinted at potential integration of these AI tools into Safari's search options.
Despite increasing competition in the search sector, Citi remains optimistic about Alphabet's innovative offerings. The firm is particularly encouraged by the company's advancements in generative AI, specifically emphasizing the potential of Gemini 2.5 and the expanded beta introduction of AI Mode. Citi believes these developments position Alphabet well in the evolving landscape.
