Wedbush reiterated its “outperform” rating for Alphabet Inc (NASDAQ:GOOG), Google’s parent company, with a price target of $210 per share, highlighting Alphabet’s strong third-quarter results and resilience in a challenging digital landscape, with competition coming from the nascent AI sector.
The report, titled “Come At The Search King, Best Not Miss”, underscores that despite rivals targeting Google’s dominance in search, Alphabet’s innovations in artificial intelligence and cloud services have kept it ahead of the pack.
The Silicon Valley giant's revenue hit $87.4 billion, a 14% increase year-over-year, driven by growth in advertising and a 35% surge in Google Cloud revenues.
Wedbush noted that Alphabet’s new AI features, such as Gemini in Google Search, have enhanced user engagement, strengthening its market position.
Efficiency improvements, reducing cost-per-query by over 90% in the past 18 months, have also expanded AI’s reach within Google’s core services.
Wedbush sees Alphabet’s advancements as a reminder that, even with heightened competition, the “Search King” continues to lead, particularly as it leverages AI to drive growth.
The investment firm views Alphabet’s performance as undervalued, particularly as the company strengthens its lead in both search and cloud solutions.
Pre-market, the stock is up 7% at $171.14.