Alphabet (GOOGL) Investors Bet that Q2 Results Will Outweigh Antitrust Risks
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
It is worth noting that for the upcoming quarter, analysts expect Alphabet to report $2.18 per share in earnings and nearly $94 billion in revenue, which are increases of 15% and 11%, respectively, from last year. In addition, this growth trend is projected to continue until 2028. Still, Alphabet is trailing behind competitors like Meta (META) and the Nasdaq 100 Index (QQQ) this year, partly because investors are worried that AI tools like ChatGPT could threaten Google's dominance in the search market.
The antitrust case is also a big concern. In fact, the Justice Department wants Google to sell its Chrome browser and stop paying companies like Apple (AAPL) to be the default search engine on its devices. Nevertheless, Alphabet is expected to benefit from the rise of AI, especially in its cloud business, which recently signed a deal with OpenAI to provide it with more computing power. Moreover, GOOGL stock is trading at just 18 times estimated earnings, making it the cheapest among the top tech giants.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $205.71 per share implies 8.5% upside potential.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
39 minutes ago
- Yahoo
Analysts turn heads with new Alphabet stock price target after earnings
Analysts turn heads with new Alphabet stock price target after earnings originally appeared on TheStreet. Alphabet's solid earnings have investors feeling more confident in Google again. The company posted earnings of $2.31 per share on revenue of $96.43 billion, both ahead of Wall Street analysts' forecast. Search brought in $54.19 billion, while total ad revenue climbed to $71.34 billion, up 10% from last year. YouTube ads came in at $9.8 billion, slightly above expectations. Cloud was a standout, with revenue jumping 32% to $13.62 billion. Alphabet recently struck a deal with OpenAI to power ChatGPT using Google Cloud. Alphabet also raised its 2025 capital spending forecast to $85 billion, up from $75 billion in February, citing 'strong and growing demand for our Cloud products and services.' CFO Anat Ashkenazi said spending will likely increase again in 2026. The upbeat report helped push Alphabet stock () closer to its all-time high. Shares closed at $194.08 on July 25, up more than 13% over the past month. That mirrors a broader bounce in tech stocks as optimism grows around AI and cloud. So far this year, however, Alphabet shares are still trailing the market, up just 1.91% compared to the S&P 500's 8.62% gain. Analysts raise Alphabet's stock price targets Alphabet's latest earnings beat has prompted a wave of price target hikes from Wall Street analysts, though opinions split on how much upside is left. Bank of America analyst Justin Post raised his price target on Alphabet to $217 from $210 while maintaining a buy rating, following the company's better-than-expected second-quarter analyst highlighted that both Cloud and Search outperformed expectations, calling them 'a bright spot' in what he described as 'another strong' quarter that suggests AI use is growing the market. "Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," the analyst wrote. "We acknowledge growing users of OpenAI but think Street could be underappreciating potential AI driven upside for Search (more use, better ads) and Cloud," he added. JPMorgan raised its price target on Alphabet to $232 from $200 and reiterated an overweight rating, according to The firm believes Alphabet's AI-driven demand and accelerating backlog make Google Cloud a "bigger driver of the bull case going forward." Other firms also lifted their targets following the earnings beat, though with a more cautious tone. Stifel raised its price target on Alphabet to $222 from $218, citing solid performance across Search, YouTube, and Cloud. However, the firm doesn't expect much follow-through in shares due to lingering concerns about Alphabet's long-term AI position and the DOJ overhang. UBS bumped its target to $202 from $192, calling the quarter Alphabet's 'cleanest' in a while, with strong fundamentals supporting earnings growth. Still, the firm kept a neutral rating, pointing to pressure on the stock's valuation from unresolved regulatory risks and rising competition in Search. Google still faces pressure Despite Alphabet's strong earnings, concerns around regulatory and competitive threats still exist. The company is currently facing a major antitrust lawsuit from the U.S. Department of Justice. In early August 2024, Judge Amit Mehta of the U.S. District Court for the District of Columbia accused Google of illegally maintaining a search engine monopoly by using exclusive agreements with device makers like Apple () .The DOJ is now pursuing remedies that include forced divestitures of Chrome and Android. The case is still pending, but could lead to structural changes or costly settlements if the DOJ prevails. Mehta said he aims to rule by August, Reuters reported. Beyond regulatory headwinds, Alphabet is also under mounting pressure from emerging AI competitors. More Wall Street Analysts: Veteran analyst drops surprise call on Tesla ahead of earnings Best Buy analyst, focused on earnings growth, reworks stock price target Microsoft analysts reboot stock price targets ahead of Q4 earnings As generative AI reshapes how users find information, traditional search is being challenged by AI tools like ChatGPT. These platforms offer more conversational responses, potentially reducing the need for users to 'Google.' There's also a risk that trade tensions could curb advertiser spending on Google's platforms, potentially impacting revenue growth. But when asked about the outlook, Alphabet's Chief Business Officer Philipp Schindler said it was too soon to make any calls. 'I think it's really too early to comment on anything happening in the second half of the year,' Schindler turn heads with new Alphabet stock price target after earnings first appeared on TheStreet on Jul 26, 2025 This story was originally reported by TheStreet on Jul 26, 2025, where it first appeared.
Android Authority
an hour ago
- Android Authority
Google says it's working to fix voice commands for your smart lights
Lil Katz / Android Authority TL;DR Google has acknowledged a bug affecting voice commands for smart lights. The company says it is aware of the issue and will share an update soon. Many users say they can still control lights via the Google Home app, but not through Assistant voice commands. Google has confirmed it's investigating a bug preventing users from controlling their smart lights through Google Assistant voice commands. We first reported on the issue over the weekend, as user complaints have continued to pile up on Reddit and Google's support forums in recent days. Android Authority's Rita El Khoury also experienced the problem firsthand, noting that her Nest Audio speaker stopped responding to voice commands to turn off the lights. In a comment posted on Reddit, the official Google Nest account has now addressed the problem: We're aware of an issue with using voice commands to control some lights. We'll share an update as soon as possible, thanks for your patience. While Google hasn't provided a timeline for a fix, it's clear the issue is more than a small glitch. Affected users report various problems, including Google not recognizing light groups, turning off the wrong lights, or responding with silence when given commands like 'Hey Google, turn off the lights.' Most users say the lights can still be controlled via the Google Home app, suggesting that the issue lies specifically with Assistant voice functionality. Some users have found workarounds, such as syncing devices again or removing and re-adding their lighting services, but results vary. 'I had this problem too. I saw someone else post a fix earlier today (Google must have done something that messed things up). You just need to reconnect the service you use for your lights. Go to Google Home app, click the + button to add a new device. Go to the works with Google section and reconnect any of the services you use for the lights. That should work… Maybe,' a user noted on Reddit. However, this may not be an easy fix for those who have multiple lights connected throughout their home. The bug comes at a difficult time for Google's smart home ecosystem, which has been under increased scrutiny from users citing reliability issues. Google has also promised major improvements to the platform in the fall. Until then, users will have to wait for an official fix for this particular problem related to voice commands for connected lights or rely on manual controls as a workaround.
Yahoo
an hour ago
- Yahoo
The next Made By Google event (better known as the Pixel launch) is set for August 20
Google will host its next Made by Google event on August 20, the company announced today. In a media invite, it promised the event would feature new Pixel phones, watches, buds "and more." It's hard to imagine what other product types might be covered by those last two words, but for those who watch the industry closely, this event is likely to see the launch of the Pixel 10 flagship phones, along with a Pixel Watch 4 and new Pixel Buds. It's easy to make that deduction, especially going by previous Made By Google events. At last year's hardware launch, Google announced the Pixel 9, Pixel 9 Pro, Pixel 9 Pro XL, Pixel 9 Pro Fold, Pixel Watch 3 and Pixel Buds Pro 2. Between that and the company's invite, we can expect a refresh of nearly the entire Pixel line. As for what the "and more" bit could entail, recent rumors suggesting Google is working on a proper response to Apple's MagSafe tech dubbed Pixelsnap. Android manufactures have been slow to adopt the Qi2 wireless charging standard, but with the upcoming Pixel 10 it appears the company is working on a host of magnetic Qi2 accessories, including a new charging stand. As always, be sure to visit Engadget on the day of the event as we'll have a liveblog of the entire proceedings. Update, July 16 2025, 1:50PM ET: This story has been updated to include a list of devices we expect Google to unveil on August 20.
