Jefferies Raises PT on Alphabet (GOOGL) Stock

Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Long Term Growth Stocks to Buy Now. On October 5, Jefferies lifted the price target on the company’s stock to $285 from $230, while keeping a “Buy” rating, as reported by The Fly. Notably, the firm expressed confidence in Alphabet Inc. (NASDAQ:GOOGL)’s AI positioning, highlighting that while Gemini is not currently the AI chatbot winner, the platform remains strongly positioned to be one of the leading AI answer engines. Furthermore, the firm noted the company’s potential to create a unified chat interface possessing clear intent, merging AI overviews, AI mode, and search capabilities with intelligent self-routing.

This will provide Google ownership of the high-value funnel guiding customers from the discovery to purchase decisions. The analyst also highlighted Circle to Search and Google Lens as features that tend to expand the search experience with multi-modality throughout browsers such as Chrome and Safari, helping to potentially transform Google search into the ultimate decision engine. In Q2 2025, Alphabet Inc. (NASDAQ:GOOGL) highlighted that Google Services revenues rose 12% to $82.5 billion, demonstrating healthy performance across Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads.

SaltLight Capital, an investment management company, has released its Q2 2025 investor letter. Here is what the fund said:

“To illustrate our approach to navigating these uncertainties, we turn to our recent investment in Alphabet Inc. (NASDAQ:GOOGL), which exemplifies balancing innovation risks with established strengths.

Innovator’s Dilemma: Google is grappling with an Innovator’s Dilemma as it protects its $200 billion search business from a significant technological shift. To put it plainly, Google Search’s primary purpose is to act as a ‘match-maker’, guiding users to the best source for their query on the open web. However, artificial intelligence is changing this role, with AI handling much of the searching, synthesis, and answering for the user, reducing the need to visit destination websites to gather information. A natural tension is emerging.

Humans naturally gravitate towards the path of least resistance, increasingly depending on AI to undertake cognitive tasks for them. This development poses challenges for content providers and for Google itself, which derives advertising revenue from these interactions…” (Click here to read the full text)

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.

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Disclosure: None. This article is originally published at Insider Monkey.