Alphabet (GOOG, Financial) received an upgrade to "Outperform" from "Market Perform" by Citizens JMP analyst Andrew Boone, who also set a price target of $220. The analyst emphasized that advancements in artificial intelligence (AI) are beneficial for the company, overshadowing the minimal impact of competitors like ChatGPT. AI isn't just improving search efficiency by answering a wider range of questions, but it's also enhancing monetization by better understanding user intent.
According to Citizens, despite the presence of competition like ChatGPT, AI's positive impact on Alphabet far outweighs any potential market share losses. If Google's search query growth rate of 10% remains steady, driven by these AI enhancements, the company could experience a mid-single-digit growth in Q3 queries. This AI-driven improvement in understanding and monetizing user intent is expected to expand Google's search monetization capabilities, according to Boone's analysis.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Alphabet Inc (GOOG, Financial) is $201.56 with a high estimate of $225.00 and a low estimate of $185.00. The average target implies an upside of 15.55% from the current price of $174.43. More detailed estimate data can be found on the Alphabet Inc (GOOG) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Alphabet Inc's (GOOG, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alphabet Inc (GOOG, Financial) in one year is $198.52, suggesting a upside of 13.81% from the current price of $174.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alphabet Inc (GOOG) Summary page.
