Morgan Stanley says Alphabet (GOOG) (GOOGL) sentiment has “(again) troughed” due to AI-disruption fears and more recently Q1 decelerating paid click growth as well as press reports of Apple (AAPL) talking with other partners like OpenAI and Perplexity AI to power its next generation “search” and also revealing that searches on the Safari browser dropped for the first time in April due to increased AI usage. Shares are now trading at about 15-times the firm’s FY26 $10 EPS estimate, which the firm calls “a trough multiple and in our view tactically a strong buying opportunity.” The firm adds that its $185 price target represents 22% upside and reiterates an Overweight rating on shares of Google’s parent.
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