BofA Global Research maintains its "Buy" rating on Alphabet Inc. (GOOGL) with a price objective of $225, citing strong eCommerce ad spend as a key driver for Q4 performance. The report anticipates positive outcomes for Alphabet's Search and YouTube segments, following Meta's Q4 ad beat, while noting Azure's miss as a neutral factor for Alphabet's Cloud division. Analysts expect favorable commentary on cloud demand and AI advancements, particularly with the ramp-up of Gemini 2.0. However, potential risks include a deceleration in Q1 and competitive pressures in the first half of 2025. BofA remains optimistic about Alphabet's AI initiatives and cloud demand, stating, "We expect positive commentary on cloud demand, AI overviews ramp and Gemini 2.0."
As of January 31, 2025, Alphabet's stock is trading at $203.89, up 1.50% from the previous close.