Alphabet (NASDAQ:GOOGL) investors had good reason to smile last week, as a big question mark regarding the company’s future operations was finally lifted for the better. Federal judge Amit Mehta ruled that Alphabet would not be forced to make any structural changes to its operations, which could have even included jettisoning its popular Google Chrome web browser.
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The market wasted no time reacting, sending GOOGL’s share price upward by double digits in the days following Mehta’s decision. That surge builds on a broader winning streak for the tech giant over the past four months, with shares climbing about 54%.
There are multiple drivers fueling investor optimism. The company’s Q2 2025 earnings report showed revenue of $96.4 billion, up 14% year-over-year, driven by robust growth in its core advertising business, with Search contributing more than $54 billion and YouTube ad sales accelerating. Cloud revenue jumped about 32% year-over-year, underscoring Alphabet’s strength as enterprises increase spending on AI-enabled infrastructure. The results also reflected strong operating income and reaffirmed Alphabet’s ability to balance heavy investment (management outlined an ambitious $85 billion capex plan for AI and data centers) with consistent profitability. Alongside a recent $10 billion cloud deal with Meta, these factors further bolstered the bullish case.
So, is now the time to jump on GOOGL’s Bandwagon? Tigress Financial analyst Ivan Feinseth, who is among the top 3% of Wall Street pros, certainly thinks so.
“Alphabet continues to benefit from its AI-driven leading position across every major secular technology trend that continues to drive robust revenue, cash flow, profitability, and increasing shareholder value creation,” Feinseth noted.
Importantly, the company isn’t standing still. Alphabet is expanding on several fronts, bolstering cloud security with its Wiz acquisition and scaling up Waymo’s autonomous vehicle operations, which have already logged over 4 million paid trips and 100 million miles.
“We believe further upside in the shares exists,” sums up Feinseth, who is assigning GOOGL a Strong Buy rating, while raising his price target from $240 to a Street-High $280, representing an upside approaching 20%. (To watch Ivan Feinseth’s track record, click here)
Wall Street more broadly shares the enthusiasm, with 28 Buys and 9 Holds translating to a Strong Buy consensus rating. Still, the latest rally has outpaced some forecasts, leaving GOOGL’s 12-month average price target of $231.58 with limited implied upside for now. It will be interesting to see if other analyst revisions follow shortly. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.