Google Stock Boosted By AI Growth, Cloud Expansion, Cost Discipline Despite DOJ And Generative AI Challenges: Analyst

Core Viewpoint - Bank of America Securities analyst Justin Post maintains a Buy rating on Alphabet Inc with a price target increase to $225 from $210, highlighting strong performance in 2024 driven by new product launches and cost discipline [1] Group 1: Performance and Outlook - Alphabet stock has increased by 35% in 2024, outperforming the S&P 500 which rose by 23% [1] - The year 2025 is identified as pivotal for Google, with potential to establish itself as an AI leader or face increased search disruption risks [2] Group 2: Risks and Challenges - The emergence of Generative AI search platforms and ongoing DOJ search case judgments pose risks to Alphabet's market position compared to FANG peers [2] - Recent US dollar appreciation has led to lowered earnings estimates for 2025, with EPS revised down to $8.78 from $8.96 [4] Group 3: Positive Factors - Potential positives for Google include increased usage of AI overviews, new advertising opportunities, and greater appreciation of AI assets [3] - The cloud business is expected to contribute more value, and there may be changes or settlements in the ongoing search case under new administration [3] Group 4: Financial Adjustments - The price target adjustment reflects a revised 2026 GAAP EPS of $10.06, down from $10.31, and a lower multiple of 21x compared to 22x previously [4] - GOOGL stock was noted at $191.16, with a slight increase of 0.04% at the last check [4]