Alphabet (GOOGL) Stock Climbs on Q2 Double-Beat, Unveil Record AI Budget
GuruFocus ·
July 24 - Alphabet NASDAQ:GOOGL shares climbed about 3% in pre-market trading on Thursday, following a second?quarter report that topped analyst forecasts.
The Google parent reported revenue of $96.43 billion, ahead of the $94 billion consensus, and up 14% from a year earlier. Adjusted EPS came in at $2.31, compared with expectations of $2.18.
YouTube ad sales reached $9.8 billion, exceeding the $9.56 billion forecast. Google Cloud revenue rose to $13.62 billion, also beating estimates. The results show strong underlying demand for the company's core services.
Chief Executive Sundar Pichai said capital spending would increase by $10 billion to $85 billion for 2025. The boost reflects investments in AI infrastructure and Google Cloud expansion, and may pressure free cash flow in the near term.
Despite solid growth, shares remain roughly flat year?to?date, as investors weigh the hefty CapEx ramp. Some may be waiting for clearer signs of AI monetization beyond server build?outs.
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Based on the one year price targets offered by 51 analysts, the average target price for Alphabet Inc is $207.34 with a high estimate of $250.00 and a low estimate of $160.00. The average target implies a upside of +8.99% from the current price of $190.23.
Based on GuruFocus estimates, the estimated GF Value for Alphabet Inc in one year is $199.27, suggesting a upside of +4.75% from the current price of $190.23. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.
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GuruFocus