Bank of America Securities analyst Justin Post has reiterated their bullish stance on GOOGL stock, giving a Buy rating today.
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Justin Post has given his Buy rating due to a combination of factors, primarily driven by Alphabet’s strong second-quarter performance and promising growth prospects in key segments. The company’s net revenue exceeded expectations, with significant contributions from both its Search and Cloud divisions. Search revenue grew by 12% year-over-year, surpassing market estimates, while Cloud revenue saw a remarkable 32% increase, indicating robust demand and operational efficiency.
Furthermore, Alphabet’s strategic investments in AI and cloud infrastructure are expected to sustain its competitive edge. The acceleration in paid click growth and the expansion of monthly active users for Google’s Gemini platform highlight the potential for continued user engagement and revenue growth. Additionally, the company’s raised capital expenditure guidance and increased revenue and earnings projections for the upcoming years reinforce confidence in its long-term growth trajectory. Despite potential regulatory challenges, the overall outlook remains positive, supporting the Buy recommendation.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $230.00 price target.