Alphabet Inc. (NASDAQ:GOOGL) is one of the Trending AI Stocks on Wall Street’s Radar. On October 20, Bank of America reiterated Alphabet as “Buy” and raised its price target to $280 per share from $252. The price target raise comes ahead of Alphabet earnings later this month.
According to the firm’s checks, third-quarter advertising spending is ahead of expectations, driven by factors such as improving macroeconomic conditions, accelerating data use, and ad spend.
“Checks indicate 3Q ad spending ahead of expectations, supported by improving macro, increasing data use, & ad spend to offset organic search traffic declines.”
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Regarding earnings, the firm has raised its revenue forecast above Street consensus. It now anticipates third-quarter revenue of $86.0 billion versus the Street’s $85.0 billion. However, its EPS estimate of $2.17 trails the consensus $2.29 due to anticipated legal charges of $3.9 billion.
The firm also expects solid search performance with steady paid click growth. This could alleviate AI disruption risk and also support multiple expansions. BofA also said that it anticipates growing momentum in Gemini usage and that recent Cloud deals may aid backlog growth.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.
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