Phillip Securities analyst Paul Chew has maintained their bullish stance on GOOGL stock, giving a Buy rating on May 23.
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Paul Chew has given his Buy rating due to a combination of factors that highlight Alphabet’s strong growth potential. The company’s cloud business is a significant driver of performance, with robust demand leading to a substantial increase in cloud revenue and operating margins. Despite supply constraints, Alphabet is committed to a significant capital expenditure aimed at bolstering AI-related infrastructure, which is expected to enhance long-term revenue generation.
Moreover, Alphabet’s management is focused on cost efficiency, which could lead to improved margins. While there is a short-term impact on advertising revenue due to tariffs and a slowdown in growth, advertising remains a dominant revenue source for the company. The company’s leadership in search and advertising, coupled with strategic investments in cloud and AI, underpin the positive outlook reflected in the Buy rating.
In another report released on May 23, Barclays also maintained a Buy rating on the stock with a $220.00 price target.
GOOGL’s price has also changed slightly for the past six months – from $169.120 to $168.470, which is a -0.38% drop .