Analyst Jeffrey Wlodarczak of Pivotal Research reiterated a Buy rating on Alphabet Class C, boosting the price target to $350.00.
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Jeffrey Wlodarczak has given his Buy rating due to a combination of factors that highlight Alphabet’s strong financial performance and growth potential. Alphabet’s third-quarter results exceeded expectations with significant year-over-year revenue growth across all major business lines, including search, YouTube, and cloud services. The company’s cloud segment, in particular, showed impressive growth, driven by advancements in AI and TPU technology, which are expected to continue propelling its expansion.
Moreover, despite potential challenges in the search market due to AI competition, Alphabet’s early investments in AI have positioned it favorably with its Gemini platform outperforming peers. The company’s strong relationships with handset manufacturers and its financial resources further support its leadership in the AI transition. Additionally, Alphabet’s pricing power in search and operational efficiencies are expected to enhance profitability. These factors, along with an increased target price based on a discounted cash flow valuation, underpin Wlodarczak’s Buy rating.