Analyst Laura Martin from Needham maintained a Buy rating on Alphabet Class A and keeping the price target at $330.00.
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Laura Martin’s rating is based on her view that Alphabet is structurally well positioned to withstand and adapt to the competitive threat posed by OpenAI’s move into advertising. She highlights that OpenAI’s decision to sell ads on a CPM, impression-based model contrasts with Google’s long-established performance-driven search advertising, which remains deeply embedded in marketers’ budgets and workflows. Martin also notes that the initial ad rollout at OpenAI is focused on its free and mid-tier plans, suggesting a gradual ramp that gives Google time to refine its own AI-driven ad formats and defend share.
Furthermore, she underscores that Google’s massive installed base of search users, robust data assets, and sophisticated ad-tech infrastructure provide a powerful moat as new AI ad formats emerge. In her view, advertiser uncertainty around the effectiveness and measurement of OpenAI’s early ad offerings should benefit a proven platform like Google Search and its evolving AI Answers product. As a result, Martin concludes that Alphabet’s long-term growth prospects and competitive advantages in digital advertising remain intact, supporting her Buy rating on GOOGL shares.
In another report released on January 23, Citi also reiterated a Buy rating on the stock with a $350.00 price target.