Wall Street liked what it saw in Alphabet’s first-quarter financial report. Shares rose around 5% in premarket trading after Alphabet, the parent company of Google and YouTube, reported stronger-than-expected first-quarter results on Thursday. The tech giant posted revenue of $90.23 billion and earnings per share of $2.81, while analysts polled by LSEG expected $89.12 billion in revenue and earnings of $2.01 per share. Alphabet’s search and advertising businesses remained resilient even as competition in artificial intelligence heats up and questions remain about macroeconomic and regulatory pressures. Shares of Alphabet have been pummeled amid the broader market sell-off this year, particularly as traders have moved away from technology stocks into more risk-off plays. The stock is down about 15.9% this year, but gained more than 5% this week. “While macro visibility remains limited … YouTube’s mixshift to DR underscores its monetization evolution, and expanding margins make us incrementally positive on shares,” Citi wrote after the release. Analysts remain bullish on the stock after the report, with many hiking their price targets. Here’s what a few of them had to say. JPMorgan: overweight, hikes price target to $195 from $180 Analyst Doug Anmuth’s price target implies more than 20.8% upside from Thursday’s close. “Against a backdrop of competitive and macro concerns, Google delivered solid 1Q results w/upside in advertising revenue and operating income,” Anmuth wrote in a note to clients. “Google will start to lap tough insurance advertising comps in 2Q and management (lightly) acknowledged de minimis exemption headwinds, but otherwise avoided speculation on macro beyond the obvious that Google is not immune. Overall we come away incrementally positive that: 1) Google is maintaining solid search monetization despite growing LLM competition; and 2) Google has additional cost levers to help offset increasing depreciation.” Bank of America: buy, price target upped to $200 from $185 Analyst Justin Post’s new target reflects about 23.9% potential upside. “Another quarter of strong results supports our thesis that Alphabet can be a net AI beneficiary, expanding the search opportunity and opening new business models. While we acknowledge business model transition risks and competitive overhangs, we believe Street may be underappreciating monetization ramp possible in AI Overviews, and from AI-driven Cloud demand,” Post said, adding that Google “has data and distribution advantages and has closed the LLM performance gap.” Goldman Sachs: buy, price target moved up to $220 from $205 Analyst Eric Sheridan’s price target suggests Alphabet shares could jump more than 36%. He believes Alphabet’s core search product is “in the midst of a multi-year evolution” and that the company’s cloud business is set to benefit from AI and computing developments. “Looking long-term, we continue to view Alphabet as well-positioned against both the current (mixture of desktop and mobile utility) and potential future (AI/ML; personalization; lowered friction to applications) computing landscapes,” Sheridan wrote in a Friday note. “We continue to advocate that the combination of AI distribution at scale (collection 1bn+ user applications) and scale of compute to both invest and drive efficiencies remain as a dual under-appreciated narrative in terms of AI over the long-term, particularly as we move from the “infrastructure” to “platform” and “application” layers of AI monetization.” Citi: buy, price target hiked to $200 from $195 Analyst Ronald Josey said headwinds persist around search competition, regulatory scrutiny and macroeconomic concerns. He maintained a bullish outlook, with his new price target signaling 25.5% upside. “While macro visibility remains limited—particularly into 2H25—1Q’s 10% Y/Y growth in Search revenue highlights Search ads resiliency, YouTube’s mixshift to DR underscores its monetization evolution, and expanding margins make us incrementally positive on shares … perhaps our biggest takeaway from the quarter was the growing contribution to usage and monetization from AI Overviews and AI Mode in Search, a trend that we believe can continue for some time.” Morgan Stanley: overweight, maintains price target at $185 Analyst Brian Nowak’s price target forecasts 14.6% upside ahead. “Macro question marks remain, but GOOGL’s leading reach and user base combined with the ability to continue shipping GenAI-enabled products that drive incremental engagement and more durable multi-year monetization (as they are now) will keep it a relative out-performer,” Nowak said. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
