Analysts turned their heads with new Alphabet stock price targets after initially appearing on TheStreet’s revenue.
Alphabet's reliable revenue has once again made investors feel more confident about Google.
The company's revenue of $96.43 billion was $2.31 per share, both ahead of Wall Street analysts' forecasts.
Search brought in $54.19 billion, while total advertising revenue climbed to $71.34 billion, a 10% increase from last year. YouTube advertising revenue was $9.8 billion, slightly higher than expected.
Cloud is an outstanding person, with revenue jumping 32% to $13.62 billion. Alphabet recently concluded a deal with Openai to power CHATGPT using Google Cloud.
Alphabet also raised its 2025 capital expenditure forecast to $85 billion, up from $75 billion in February, citing “the demand for our cloud products and services is strong and growing.” Chief Financial Officer Anat Ashkenazi said spending could increase again in 2026.
Optimistic reports help drive letter stocks ((GOOGL) Closer to its all-time highest level. Stocks closed at $194.08 on July 25, up more than 13% in the past month. With the optimism of AI and cloud, this reflects a broader rebound in technology stocks.
However, Alphabet stock is still lagging behind the market so far this year, growing by just 1.91%, while the S&P 500 has grown at 8.62%.
Despite its high revenues, Alphabet is focused on regulatory and competitive threats. Boris Streubel / Getty Images
Alphabet's latest earnings rhythm prompted Wall Street analysts to waves of price targets, despite disagreements over the remaining upside.
Bank of America analyst Justin Post raised his letter target from $210 to $217 while maintaining his buy rating while maintaining his buy rating.
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Analysts stressed that both cloud and search performed better than expected, calling them “another powerful” quarter, suggesting that AI usage is growing in the market.
“Another stable QTR in search results has increased our confidence in the AI transition and should alleviate concerns about potential revenue resets,” the analyst wrote.
He added: “We acknowledge that there are more and more Openai users, but think that the streets may not be enough to search for potential AI-powered (more uses, better advertising) and cloud.”
According to TheFly.com, JPMorgan raised its price target on Alphabet from $200 to $232 and reiterated its overweight rating.
The company believes that Alphabet's AI-driven demand and accelerated backlog makes Google Cloud the “larger driver of Bull Case.”
After the earnings beat, other companies also canceled their targets, despite the more cautious tone.
The story continues
Stifel increased its target target in Alphabet from $218 to $222, citing solid performance between search, YouTube and Cloud. However, the company's stock does not expect stock due to concerns about Alphabet's long-term AI position and DOJ Overhang.
UBS set its target from $192 to $202, saying the quarterly letters were called “cleanest” for some time, with strong fundamentals supporting earnings growth.
Nevertheless, the company maintained a neutral rating, suggesting that the pressure on stock valuations is unresolved regulatory risks and rising search competition.
Despite Alphabet's high revenue, there is still concern about regulatory and competitive threats.
The company is currently facing major antitrust lawsuits from the U.S. Department of Justice. In early August 2024, Judge Amit Mehta of the District Court of the District of Columbia accused Google of illegally maintaining search engine monopoly through an exclusive agreement with device manufacturers such as Apple. ((AAPL) .
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The Justice Department is now seeking remedies for forced stripping of Chrome and Android.
The case is still pending, but if the Justice Department prevails, it could lead to structural changes or expensive settlements. Meta said his goal is to rule by August, according to Reuters.
In addition to regulatory headwinds, letters are under increasing pressure from emerging AI competitors.
More Wall Street analysts:
As generative AI is reshaped, how users find information, traditional search is being challenged by AI tools such as Chatgpt. These platforms provide more conversational responses, potentially reducing the demand for users “Google”.
Trade tensions could curb advertisers’ spending on Google platforms, potentially affecting the risk of revenue growth. But when asked about the prospect, Alphabet's chief business officer Philipp Schindler said it was too early to make any calls.
“I think it's too early to comment on what happened in the second half of the year,” Schindler said.
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Analysts turn heads with new Alphabet stock price targets after first appearing on TheStreet on July 26, 2025.
This story was first appeared on July 26, 2025 by TheStreet.