UBS Lifts PT on Alphabet (GOOGL) Stock

Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Wide Moat Stocks to Buy Right Now. The company’s wide economic moat is primarily backed by its strong network effects and intangible assets. On October 9, UBS analyst Stephen Ju lifted the price target on the company’s stock to $255 from $237, while keeping a “Neutral” rating ahead of the Q3 2025 earnings report. As per the analyst, the ad revenue outlook has been improving for Alphabet Inc. (NASDAQ:GOOGL). In Q2 2025, YouTube advertising revenues rose by 13% to $9.8 billion, supported by the Direct Response advertising, followed by Brand. Notably, Network advertising revenue amounted to $7.4 billion, which was down by 1%.

Elsewhere, on October 8, Reuters reported that Alphabet Inc. (NASDAQ:GOOGL) would serve as the official cloud provider of the Los Angeles 2028 Olympic and Paralympic Games and has joined LA28 as the founding partner. Notably, the deal also extends to Team USA and NBCUniversal’s U.S. coverage.  This partnership would utilise Google’s cloud infrastructure and AI tools, which include its Gemini model and new Google Search features like “AI Mode,” noted Reuters.

SaltLight Capital, an investment management company, released the 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.