Alphabet Inc. (GOOG) Stock Has Multiple, Positive Catalysts, BMO Capital Says

Among Alphabet Inc. (GOOG)'s positive developments are the progression of its Gemini project, its expansion on a number of fronts, and its Rich Communication Services program, BMO Capital reported yesterday.

The bank kept a $200 price target and an Outperform rating on GOOG shares.

BMO Outlines Alphabet Inc. (GOOG)'s Initiatives

Gemini's capabilities in the area of natural language processing are advancing, BMO reported. Additionally, the initiative's real-time information processing abilities will improve the experiences of Google's users while increasing the number of queries by users, according to the bank.

Meanwhile, Alphabet Inc. (GOOG)'s new initiatives in wearables, TV, and automotive are likely to improve its user metrics. And GOOG's Android 16 update will enable the operating system to make its offerings more personalized, while its Live Update feature will provide data very quickly, according to BMO.

Finally, the firm's Rich Communication Services are enabling Android users to interface more effectively with their iOS counterparts, according to the bank. As a result, Android usage metrics may rise, BMO thinks.

The Recent Price Action of Alphabet Inc. (GOOG) Stock

In the last month, the shares have risen 7%, while they have dropped 10% in the last three months. The shares are down 13% so far in 2025.

While we acknowledge the potential of GOOG, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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