Phillip Securities analyst Paul Chew has maintained their bullish stance on GOOGL stock, giving a Buy rating today.
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Paul Chew has given his Buy rating due to a combination of factors that highlight Alphabet’s long-term growth potential despite near-term earnings pressure from heavy AI investments. He notes that revenue is expanding rapidly across core businesses, with advertising supported by stronger engagement in Search, YouTube Shorts, and Living Room, underpinned by deeper Gemini AI integration that enhances targeting, user intent detection, and monetisation efficiency.
He also emphasises the exceptional momentum in the Cloud segment, where enterprise AI demand is driving outsized revenue growth, a sharply higher operating profit, and a rapidly expanding backlog that provides strong visibility into future sales. In his view, Alphabet’s differentiated full-stack AI architecture – spanning custom chips, optimised data centres, and advanced Gemini models – underpins both advertising and cloud growth, justifying higher revenue and earnings forecasts and supporting an increased DCF-based target price that warrants a Buy recommendation.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $515.00 price target.