Goldman: Don't Doubt Alphabet's Core Strengths
Alphabet's (NASDAQ:GOOG) 9% year-to-date pullback belies its enduring search dominance and AI prowess, making it a Buy at current levels, Goldman's Eric Sheridan says.
Despite concerns about AI monetization speed, regulatory headwinds and ad?cloud competition, Sheridan argues the market has priced in excessive negativity, paving the way for a rebound as Alphabet executes its long?term strategy.
Warning! GuruFocus has detected 3 Warning Sign with MSFT.
He highlights that Search and Other revenueprojected to jump from $198 billion in 2024 to $318 billion by 2030remains the core engine, while first?party data and a global data?center network bolster AI integration across YouTube, Maps and Workspace. Sheridan also underscores that Alphabet's cloud division and digital infrastructure offer a solid foundation for future growth, even if near-term ad spending fluctuates.
Investors should care because limited downside risk and robust long-term cash flows from search, advertising and AI position GOOGL for sustained upside once short-term fears abate.With Alphabet set to report earnings in late July, markets will watch for signs that AI monetization and cloud adoption are accelerating.
That said, a glance at the above chart shows that Alphabet has a 12-month price target of $201.56, roughly a 16.61% upside from its current price. The most bullish outlook sees its stock rising to $225, while the most cautious puts the floor at $185. After a weak year, analysts appear mostly optimistic, expecting steady gains as Alphabet navigates ongoing AI and ad market shifts.
This article first appeared on GuruFocus.
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