- KeyBanc cut its Alphabet price target to $410 from $435 and kept an Overweight rating, citing lower Google Services earnings.
- Truist reiterated a Buy rating and $420 price target on Alphabet ahead of the Q3 report scheduled for Oct 28.
- BMO Capital raised its Alphabet price target to $480 with an Outperform rating, based on Google Cloud growth projections.
- Truist expects mid-20% top-line growth for Q3 and Cloud revenue acceleration to 90% year over year.
- Alphabet posted Q2 revenue up 24% to $119.8 billion and Google Cloud revenue up 82%, while free cash flow was negative $5.9 billion.
- Alphabet raised full-year capex guidance by $15 billion to $195 billion to $205 billion, and shares fell roughly 6% after Q2 results.
Quotes
“The firm expects both search growth and services operating margin to be at least in line or better.”
“Investors aren't simply rewarding companies for announcing ambitious AI projects anymore.”