DA Davidson Says Alphabet (GOOGL) Breakup Could Unlock Major Shareholder Value

Alphabet Inc. (NASDAQ:GOOGL) ranks among the best cloud stocks to buy according to Wall Street analysts. On July 2, DA Davidson reaffirmed its Neutral rating and $160 price target for Alphabet Inc. (NASDAQ:GOOGL), indicating that a potential company split might provide investors with substantial value.

According to the firm, “the only way forward for Alphabet is a complete breakup” that would enable investors to hold only the portions of the company that appeal to them, such as rivals to Netflix, AWS/Azure, NVIDIA, and OpenAI.

DA Davidson also emphasized Google Cloud in its analysis, suggesting that this market area alone might have a standalone value of almost $56 per share. The firm stated that it would view Alphabet Inc. (NASDAQ:GOOGL) as “the top mega cap pick” if the company went ahead with a comprehensive division of its many business groups, even if it currently holds a Neutral position on the stock.

Alphabet Inc. (NASDAQ:GOOGL) is a leading tech giant with a diverse portfolio, offering products such as Google Ads, Google Chrome, Google Cloud, Search, and YouTube, holding a dominant position in each of these markets.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.