Key Drivers and Near-Term ProspectsAntitrust Win: The ruling preserves Google's ~80% search revenue share through ad deals, like with Apple. Analysts like Wedbush's Dan Ives raised price targets to $245, citing search's "longer-term durability." This removes a major overhang, potentially unlocking further upside.
AI and Cloud Growth: Alphabet's AI investments, including Google Cloud's data center expansions (e.g., $9B in Oklahoma) and partnerships like Qualcomm for AI in autos, are driving demand. YouTube's ad monetization and generative AI enhancements are boosting revenue, with analysts noting higher ad lead quality could lift pricing. Waymo's autonomous tech, valued at ~$173B in some analyses, adds another growth vector.
Financials: Alphabet reported $100B in earnings on $350B revenue last year, with double-digit growth expected. Its forward P/E of 22 is lower than Nvidia (50+) or Meta (25+), with $13B in recent buybacks and a strong balance sheet. AI investments (TPUs, DeepMind) position it to dominate AI infrastructure.
Outlook
Alphabet's antitrust win and AI/cloud leadership make it a strong long-term bet, potentially reaching a $4-5T market cap by 2030. It's a compelling hold or buy on dips, given its valuation edge.
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