Tech giant Alphabet Inc. (GOOGL) is set to release its Q2 earnings report on Wednesday, July 23. Ahead of the big reveal, top-rated analyst Justin Post at Bank of America Securities has lifted his price target on GOOGL stock from $200 to $210, maintaining his Buy rating. In addition, Post raised his Q2 estimates, citing steady growth in Google Search ad spending.
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BofA Raises Q2 Estimates Ahead of Earnings
Ahead of Q2 earnings, Post raised his expectations based on search trends showing stronger ad spending. He now expects Q2 revenue of $81 billion and earnings of $2.21 per share, up from his earlier estimates of $80 billion and $2.15.
Meanwhile, BofA expects Google Cloud to bring in $13.2 billion in revenue, slightly above the market’s $13.1 billion estimate, helped by higher Workspace prices. It also predicts search revenue will grow 11% from last year, beating the Street’s 9% forecast.
What to Expect from Alphabet’s Q2 Earnings
Wall Street analysts expect Alphabet to report earnings per share (EPS) of $2.18 for the second quarter, above the $1.89 posted in the same period last year. Revenue is projected to grow by almost 11% year-over-year to $93.91 billion, according to TipRanks’ analyst forecast page.
Overall, analysts will closely watch AI spending, ad revenue, and trends in search demand in the upcoming results. They’re also optimistic about Google Cloud’s performance, expecting continued progress on cost efficiency. In Q1, Google Cloud’s operating margin rose by almost 4% year-over-year, reaching 17.8%. Below is the screenshot for reference.
What Is the Target Price for Google Stock?
According to TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 29 Buys and nine Holds assigned in the last three months. The average Google stock price target is $205.6, suggesting a potential upside of 11.09% from the current level.
