Alphabet (GOOGL) stocks rose on Friday after several analysts raised the price forecast for the Google parent. Experts are currently praised Alphabet for its AI-driven initiative and recent developments, and are raising forecasts for the company’s stock. As a result, Google’s stock has grown 2% in 24 hours, up 7.6% this week.
Alphabet’s first quarter 2025 earnings report provided better numbers than expected and also contributed to the stock’s rise. For the first quarter, Alphabet reported earnings per share (EPS) of $2.81 against $90.2 billion in revenue. Analysts had expected an EPS of $2.01 against $89.1 billion in revenue, according to estimates from the Bloomberg Consensus. The company reported earnings per share of $1.89, with revenue of $80.5 billion for the same period last year.
Citi analysts raised their price target from $195 to $200, pointing to an increase in the use and monetization of AI features, including an AI overview. This said Google has reached around 1.5 billion monthly users since its launch. “We believe Google’s Genai search tool is gaining traction,” City said. Similarly, Bank of America and Wedbush have raised their price target to $200. In an investor’s note, Bofa said there are “data and distribution benefits” against rivals like ChatGpt developer Openai in that Google will drive growth in AI use.
Morgan Stanley also raised the predictions for the alphabet (Googl). Of the 19 analysts currently being tracked by Visible Alpha, 14 issued “buys” or equivalent valuations of stock. Meanwhile, the remaining five will maintain a “hold” rating. The consensus price target, nearly $195, suggests a rise of around 29% from the closing price of $151 on Thursday. GOOGL is currently just north of $160 at press time.
Additionally, Alphabet CFO Anat Ashkenazi said in a call to the company’s revenues that Google’s parents are planning to spend $75 billion in capital expenditure this year again. Most of the spending is expected to be directed towards building the company’s AI infrastructure. The investment “should help us have a more resilient organization regardless of macroeconomic conditions,” Ashkenazi said.
While the Alphabet is still facing obstacles such as looming lawsuits and the threat of selling Google Chrome, a positive revenue report reveals that the tech giant is getting stronger. Alphabet stocks have already lost nearly 20% of their value in 2025 so far. The recent anti-trust ruling on Google’s ad monopoly brings additional uncertainty to investors and analysts as well. Therefore, the company could overturn its profits in the second quarter of 2025.
