Alphabet Inc. (NASDAQ: GOOGL) is considered one of the best software infrastructure stocks to buy by hedge funds, with Jefferies raising its price target to $365 on January 5. The company’s data moat and product ecosystem, which includes seven platforms with over 2 billion monthly active users each, contribute to its positive outlook.

Jefferies forecasts Alphabet’s net revenue growth to moderate to 13% in 2026, with operating margins expanding by 140 basis points to around 39%. Google Cloud is expected to sustain growth above 30% through 2026, driven by performance from Google Cloud Platform. Despite a high valuation, analysts believe strong earnings growth justifies it.

Alphabet Inc. (NASDAQ: GOOGL) is known for its internet-related services and products, including Google, online advertising technologies, cloud computing, software, and hardware. While the company shows promise as an investment, other AI stocks may offer greater upside potential and lower downside risk, according to analysts.

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Read more at Yahoo Finance: Jefferies Sees Alphabet’s (GOOGL) Data Moat and Cloud Growth Driving Long-Term Upside