Alphabet Class C, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Buy rating on the stock and has a $280.00 price target.
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John Blackledge has given his Buy rating due to a combination of factors, primarily focusing on the strategic expansion of Google’s partnership with Anthropic. This collaboration enhances Google Cloud’s capacity significantly, providing Anthropic with substantial compute resources, including access to a large number of Google’s tensor processing unit chips. This development is expected to drive increased demand for Google Cloud services, bolstering its market position.
Furthermore, the partnership is financially substantial, described as being worth tens of billions of dollars, which underscores the potential revenue growth for Google. The rapid increase in Anthropic’s revenue run rate, from approximately $1 billion to $7 billion within nine months, highlights the promising growth trajectory of Google’s customer base. Despite Anthropic’s existing relationship with AWS, the expanded partnership with Google Cloud positions Google to capture a significant share of the growing AI compute market, reinforcing the Buy rating.
In another report released today, Raymond James also reiterated a Buy rating on the stock with a $275.00 price target.