Gelonghui November 1 | UBS issued a report pointing out that some of the benefits that Alphabet shareholders get from new capital expenditures are evident in the significant growth of search business revenue. It is estimated that Alphabet will increase its search business revenue by about 24 billion USD this year, compared with 13 billion USD in 2023 and 15 billion USD in 2022, mainly driven by innovative measures such as Performance Max. In addition, Alphabet's cloud business revenue growth in the third quarter also improved significantly. The bank expects that the full-year cloud business revenue will increase by approximately US$10 billion, compared with approximately US$7 billion in 2022 and 2023, and the current cloud business growth rate has surpassed that of YouTube. The bank believes that the above factors will help Alphabet solve the problems related to capital expenditure and return on investment, but the company's regulatory problems and concerns about the prospect of market share loss in its most important business segments may inhibit the company's growth. The bank raised its 2025 and 2026 earnings per share forecast for Alphabet by about 3% and raised its price target from $187 to $192, maintaining a "neutral" rating.
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