Alphabet's stock could reach $300 per share due to cloud surge and AI advancements.

From TradingView: 2024-07-19 06:45:00

Shares in Alphabet (GOOG) have surged over the past year, but are they peaking? Efficiency efforts have impacted the bottom line, but Google Gemini rollout mitigates concerns. The rise of AI has benefited the cloud computing segment, potentially leading to better growth for Alphabet. A new approach may be needed for continued success.

While Alphabet’s earnings hit a new high in 2023, layoffs and efficiency efforts have played a role. Severance costs from layoffs partially outweighed impact, but profitability improvements likely factored into the stock’s 46% rise since last year. Investors are anticipating AI search catalysts, but watching Google’s Gemini platform closely.

Alphabet’s digital advertising revenue rose 13% in Q1 2024, but growth could slow in the future. GenAI progress has boosted stock price, but integrating AI into search remains uncertain. Google Cloud may help extend growth runway, with revenue up 28.5% YoY in Q1 2024, positioning it as a major profit center.

Acquiring cybersecurity startup Wiz for $23 billion could boost Alphabet’s cybersecurity business and further enhance Google Cloud’s performance. Earnings estimates project significant growth by 2025 and beyond, potentially leading to share price increases. With a re-rating and above-average growth, Alphabet stock could reach $300 in the next two years.



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