Analysts predict 26% increase in Alphabet stock price, positive.

From Nasdaq: 2025-01-16 04:45:00

The Magnificent Seven AI-influenced stocks, representing one-third of the S&P 500 value, have significant market influence. Investors wonder if rising Treasury yields will trigger a correction led by these stocks. Analysts remain bullish, particularly on Alphabet, the cheapest of the seven, with a potential 26% stock price increase predicted.

Alphabet’s underperformance in 2024 was due in part to a DOJ antitrust lawsuit and concerns about competitors. Experts believe a judge ruling for a Google Chrome sale is unlikely, with less drastic changes more probable. Analysts see potential in Alphabet’s core business and AI prospects, leading to increased price targets and optimism.

While some investors predict a pullback for the Magnificent Seven stocks, Alphabet looks attractive due to core business strength and short-term sell-off from the lawsuit. The AI thesis remains intact, with bullish analysts focusing on Alphabet’s cost efficiencies, cloud business, and AI investments. Potential for significant ROI on AI investments is driving positive outlooks and increased price targets.

The Motley Fool Stock Advisor team has identified 10 top stocks for investment, excluding Alphabet. Investors are urged to consider these picks for potential high returns. The service, with a strong track record since 2002, provides guidance on building portfolios and regular stock picks. Past recommendations have resulted in significant returns, emphasizing the importance of following expert advice. The Motley Fool recommends investing in tech giants like Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. They also suggest specific options like long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. Their disclosure policy can be found on their website.

It is important to note that the views and opinions expressed in the article are solely those of the author and may not align with Nasdaq, Inc. Remember to do your own research before making any investment decisions.



Read more at Nasdaq: The Cheapest “Magnificent Seven” Stock to Buy Before It Vaults 26% Higher, According to 1 Wall Street Analyst