Bank of America Securities analyst Justin Post has reiterated their bullish stance on GOOGL stock, giving a Buy rating on November 5.
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Justin Post has given his Buy rating due to a combination of factors that highlight Alphabet’s strategic advancements and potential for growth. One key factor is the rollout of Google’s seventh-generation Tensor Processing Unit, Ironwood, which is expected to significantly enhance processing speed and efficiency. This development could boost demand in both Google’s core advertising business and its cloud services, potentially paving the way for a new chips business that would positively impact the company’s valuation.
Another factor influencing the Buy rating is the potential partnership with Apple, where Google’s Gemini AI model is set to power a revamped Siri. This collaboration not only underscores the strength of Google’s AI capabilities but also positions Gemini as a leading model in mobile device applications. Additionally, Alphabet’s settlement with Epic Games, which involves reforms to the Play Store fees, could alleviate some regulatory pressures and enhance developer relations, despite a potential short-term revenue impact. These strategic moves collectively support a positive outlook for Alphabet’s stock.
In another report released on November 5, Morgan Stanley also maintained a Buy rating on the stock with a $330.00 price target.
GOOGL’s price has also changed dramatically for the past six months – from $163.230 to $284.750, which is a 74.45% increase.