Bank of America raises price on Amazon ahead of earnings
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Yahoo
2 hours 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.
Yahoo
4 hours ago
- Yahoo
Stablecoins Are on the Rise. 3 Reasons Investors Should Pay Attention to This Popular Cryptocurrency.
Key Points New crypto legislation in Congress has paved the way for rapid expansion of the stablecoin industry. In addition to financial services firms, companies in industries ranging from retail to tech could launch new stablecoins. Stablecoins have the potential to disrupt existing industries and change the way investors value companies. 10 stocks we like better than Circle Internet Group › Passage of landmark new crypto legislation (the Genius Act) has led to a surge of positive sentiment about stablecoins. Some investors now think they have the potential to disrupt entire industries. Although some of this hype and buzz may be overblown, investors still need to pay attention. Here are three key ways that stablecoins could influence your investment strategy. 1. Impact on the business models of top companies Stablecoins, which are cryptocurrencies pegged 1:1 to a fiat currency such as the U.S. dollar, have the potential to affect the business models of companies that have nothing to do with crypto or blockchain. Take retail, for example. A handful of top retailers -- including Amazon and Walmart -- are now exploring stablecoins as a way of cutting down on credit card processing fees. At some point in the not-so-distant future, you might be paying for your online purchases with stablecoins, rather than credit cards. Or what about the financial services industry? Visa is a prime candidate for disruption, so it is already taking steps to prepare for the stablecoin era. And Western Union is also preparing for the day when customers use stablecoins rather than dollars to send cross-border remittances. So get ready to hear a lot about stablecoins on analyst calls and at investor conferences. After asking questions about the impact of artificial intelligence (AI), investors and analysts might start to ask about the impact of stablecoins. At the very least, investors need to understand how stablecoins might change or disrupt existing business models. 2. New stablecoin launches Also, get ready for a deluge of new stablecoin launches from some unlikely names. And it won't just be banks or financial institutions issuing them. Under the Genius Act, even nonbanks will be able to issue them. And that could really open the floodgates. Right now, Tether (CRYPTO: USDT) and USDC (CRYPTO: USDC), the stablecoin issued by Circle Internet Group (NYSE: CRCL), account for a whopping 90% of the $250 billion stablecoin industry. According to the latest Motley Fool stablecoin research, Tether and Circle are smaller than the biggest national banks, but larger than typical midsized brokerages. So, they're definitely, a force to be reckoned with. Right now, I'm partial to USDC, because it's the unofficial stablecoin of Coinbase Global (NASDAQ: COIN), which has a partnership agreement with Circle. I also am confident that it will never lose its peg to the U.S. dollar. I wouldn't have as much confidence in smaller stablecoins without such a proven track record or as many key partners. It's easy to see how this industry will become a lot more fragmented very soon, making it potentially even more confusing for the average investor. In June, Fortune reported that Apple, Airbnb, X, and Alphabet were exploring stablecoin launches. So, if you're an Apple fan, you might want to own an Apple stablecoin. The same is true if you're an Elon Musk fan -- wouldn't you want to own a cool new X stablecoin? 3. Ethereum Finally, there's the matter of which blockchain will emerge as the dominant platform for stablecoins. Presumably, investors will flock to blockchains that are seeing the most success with stablecoins. That's because stablecoins are key building blocks for everything that happens in blockchain finance. So the most popular blockchains for stablecoins should also get the highest valuations. Currently, Ethereum (CRYPTO: ETH) is getting a lot of buzz because it accounts for 49% of the stablecoin market. According to investment strategist Tom Lee of Fundstrat, stablecoins are going to create a "ChatGPT moment" for Ethereum, with the potential to really light a fire under its price. With that in mind, it's easy to see why high-profile investors such as Peter Thiel are now starting to increase their exposure to Ethereum as a way of investing in stablecoins. But Ethereum hardly has a monopoly on stablecoins. All Layer-1 blockchains, if they can support smart contracts, should also be able to support stablecoins. And that creates the opportunity for relatively unknown names to really pop. According to CoinGecko, Tron (CRYPTO: TRX) has a 34.1% share of the stablecoin market. By way of comparison, Solana (CRYPTO: SOL) only has a measly 2.2% share. If you think that stablecoins are the future, then Solana (with a $100 billion valuation), might be way overvalued compared to Tron, which has a $30 billion valuation. What's the best way to play the stablecoin trend? It's obvious that there are a number of different ways to play the stablecoin trend. The easiest way is to invest in the issuers of stablecoins, such as Circle. That gives you maximum exposure to any potential upside. You could also invest in blockchains such as Ethereum that are dominant in stablecoins, with the expectation that their values are going to soar. By the end of 2025, investing in stablecoins could get very interesting. What if a popular company like Amazon, Apple, or Alphabet decides to launch a stablecoin? It might fundamentally alter the way investors view these companies. That's why, even if you've never paid attention to stablecoins before, you should now. Very soon, they're going to become impossible to ignore. Should you invest $1,000 in Circle Internet Group right now? Before you buy stock in Circle Internet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Circle Internet Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Dominic Basulto has positions in Amazon, Circle Internet Group, Ethereum, Solana, and USDC. The Motley Fool has positions in and recommends Airbnb, Alphabet, Amazon, Apple, Ethereum, Solana, Visa, and Walmart. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. Stablecoins Are on the Rise. 3 Reasons Investors Should Pay Attention to This Popular Cryptocurrency. was originally published by The Motley Fool
Business Insider
7 hours ago
- Business Insider
Alibaba (BABA) vs. Amazon (AMZN): Which E-Commerce Stock Has More Upside Ahead of Q2 Earnings?
The second-quarter earnings season is in full swing, and investors are closely watching global e-commerce leaders like Amazon (AMZN) and Alibaba (BABA) to assess the strength of consumer demand, the outlook for digital retail, and their growing role in artificial intelligence. Using TipRanks' Stock Comparison Tool, we will compare these two tech-powerhouse stocks to find the better pick ahead of the upcoming earnings results, according to Wall Street analysts. 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. Alibaba (NYSE:BABA) Stock Alibaba is China's largest e-commerce and cloud services company, operating platforms like Taobao, Tmall, and AliCloud. The stock has climbed over 39% so far this year, driven by strong gains in its AI-powered cloud services and growing demand for instant delivery. The company is doubling down on artificial intelligence, aiming to use it to transform online shopping and cloud services. It is using AI across its apps and cloud platform to improve customer experience and stay ahead of the competition. Looking ahead, the company is set to report its Q1 FY26 earnings next month. Wall Street expects Alibaba to report earnings of $2.22 per share for Q1, down 3% from the year-ago quarter. The decline could be due to the company's heavy investment in logistics and delivery. Meanwhile, analysts project Q1 revenues at $35.46 billion, up 6% year-over-year. Is Alibaba Stock a Good Buy Right Now? Ahead of the Q1 results, Benchmark's Top analyst Fawne Jiang reiterated her Buy rating with a $176 price target, implying a 47% gain from current levels. The analyst sees recent share weakness as a 'buying opportunity' and encourages investors to 'build exposure on dips,' confident in Alibaba's strong long-term growth outlook. Nevertheless, she expects Alibaba's margins and profits to come under pressure in the near term due to increased spending. As a result, Benchmark has cut its EBITDA forecast to RMB44 billion for Q1 FY26 and RMB208 billion for the full FY26, 'reflecting near-term margin pressure.' Overall, Wall Street has a Strong Buy consensus rating on Alibaba stock based on 14 Buys and one Hold rating. The average Alibaba price target of $151.08 implies about 26% upside potential from current levels. Amazon (NASDAQ:AMZN) Stock E-commerce and cloud computing giant Amazon is proving the resilience of its business model despite macro challenges and tariff woes. The stock has climbed over 5% so far this year. Several analysts remain bullish on Amazon's high-margin cloud unit, Amazon Web Services (AWS), which is expected to benefit from growing AI demand. In Q1 2025, AWS accounted for just 19% of revenue but delivered an impressive 63% of total operating profit. Meanwhile, Amazon's fast-expanding advertising segment is also emerging as a key growth engine. Looking ahead, Amazon is scheduled to announce its second-quarter results on July 31. Wall Street projects a 9% growth in Amazon's revenue to $162 million. Meanwhile, analysts expect the company to report earnings per share of $1.32 compared to $1.26 in the prior-year quarter. Is Amazon a Buy, Hold, or Sell? Ahead of the Q2 print, BofA Securities analyst Justin Post raised his price target to $265, up from $248, while maintaining a Buy rating. Post expects Amazon's Q2 retail performance to be strong, helped by positive credit card spending data and an extended Prime Day. He also believes AWS is picking up pace, with a strong order backlog and rising cloud demand. The analyst now predicts Q2 revenue of $164 billion, above Wall Street's estimate of $162.1 billion. Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 44 Buys and one Hold assigned in the last three months. At $258.27, the average Amazon stock price target implies an 11.59% upside potential. Conclusion Ahead of earnings, Wall Street remains bullish on both Alibaba and Amazon stocks. However, analysts see greater upside potential in Alibaba, supported by its strong fundamentals, expanding AI initiatives, and solid recovery in e-commerce business. Meanwhile, Amazon is gaining from steady growth in cloud and advertising, two high-margin areas set to benefit from AI. While its upside may be smaller than Alibaba's, Amazon's stable growth and strong cash flow continue to earn Wall Street's confidence.
