Alphabet stock gains on strong results, William Blair reiterates Outperform
Alphabet's stock rose nearly 6% in after-hours trading following strong quarterly results that exceeded expectations in search and cloud revenue, with analysts citing confidence in its AI strategy and financial health. William Blair maintained an Outperform rating, highlighting Alphabet's AI-driven growth, increased dividend, and robust cash position as positive signals. Despite optimism, risks such as regulatory pressures, competition, and macroeconomic factors could impact future performance.
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Investing.com - William Blair reiterated an Outperform rating on Alphabet (NASDAQ:GOOGL) after the company surpassed investor expectations in search and cloud. The stock traded up about 6% in after-hours following the results, pushing shares to $349.94, just shy of the 52-week high of $355.79. The stock has surged 121% over the past year. William Blair said investors are gaining comfort with elevated capital expenditure levels as the company’s full-stack approach to AI materializes in its results. The firm forecasts roughly 15% to 20% upside in the shares through the next 12 months using a discount rate of 10% and an EBITDA multiple of 16 times.
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