Google Parent's Comeback: Stellar Ad Revenue Recovery, AI-Driven Cloud Momentum Stun Analysts
Portfolio Pulse from Shanthi Rexaline
Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) reported better than expected Q2 results, driven by strong performance in its cloud business and ad revenue recovery. KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating and raised the price target from $140 to $145. Google Cloud's revenue growth was 28%, exceeding KeyBanc's 5% growth forecast. Alphabet's AI capabilities were also highlighted as a potential driver for future growth. Alphabet shares ended Tuesday's regular session up 0.56% at $122.21 and climbed an additional 6.08% in the after-hours session.
July 26, 2023 | 5:54 am
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NEGATIVE IMPACT
Microsoft's Azure cloud service was outgrown by Google Cloud, which could potentially impact Microsoft's stock price.
Google Cloud's revenue growth was 28%, exceeding Microsoft's Azure growth of 27%. This could potentially impact Microsoft's stock price negatively in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Alphabet's strong Q2 results and positive outlook could also drive up the price of its GOOG shares.
Alphabet's Q2 results exceeded expectations, driven by strong performance in its cloud business and ad revenue recovery. This positive news, coupled with an Overweight rating and increased price target from KeyBanc, could drive Alphabet's GOOG stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Alphabet's better than expected Q2 results and positive outlook could drive its stock price up in the short term.
Alphabet's Q2 results exceeded expectations, driven by strong performance in its cloud business and ad revenue recovery. This positive news, coupled with an Overweight rating and increased price target from KeyBanc, could drive Alphabet's stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100