Alphabet (GOOGL) stocks have earned over 11% in the past month, putting one of the best 7 spectacular stocks in its range. Google Developers have announced solid revenue in their latest quarterly report. This was highlighted by revenues of $96.4 billion, falling below Wall Street expectations. Despite growing competition in AI, Alphabet continues to run for the most successful MAG-7 stock members in the sector.
However, the company’s capital expenditure outlook (CAPEX) was higher than expected. The tech giant expects to spend $85 billion a year. “We’ve seen a lot of effort into the development of technology,” said Ben Barringer, Head of Technology Research at Quilter Cheviot. “Given concerns about artificial intelligence and ChatGPT disruption, Alphabet has produced very good numbers with the latest results. Pressure.”
Can AI drive the alphabet (GOOGL) high?
Furthermore, worry about rising capital expenditures during major technologies on AI appears to be dying. Alphabet said capital expenditures would rise to $85 billion, higher than previous forecasts of $75 billion. Investing in AI has proven fruitful, with Alphabet (GOOGL) stocks helping to boost the 6% YTD.
Furthermore, Alphabet (GOOGL) still faces concerns about the consequences of an antitrust lawsuit for Google search. The DOJ wins the legal battle and the ruling is expected to arrive next month. Many analysts were concerned that the company could be forced to sell Chrome web browsers, as punishments for the alphabet could run very high. This is a major factor in the company’s profits.
Analysts are generally optimistic about the growth potential of the alphabet. Price targets range from $191 to $240, indicating potential benefits from the current price of $201.42. Wedbush and Tigress Financial are optimistic with a $225 and $240 target, respectively, while Rosenblatt is more conservative with a $191 target. Roth MKM has historically boasted the highest priced target accuracy, suggesting confidence in the $220 target.
