Wall Street analyst updates Google stock price amid ‘healthy share of incremental AI-driven activity'

Core Viewpoint - A Wall Street analyst has reaffirmed a bullish outlook for Alphabet (GOOGL) stock amidst market volatility due to trade tensions, with a focus on reclaiming the $200 resistance level [1] Stock Performance - Ahead of market opening on February 10, GOOGL was up 0.98% to $188.89, but ended the last trading session at $187.14, down 1.8% year-to-date, while still up 26% over the past year [2] Analyst Ratings and Price Targets - Bank of America (BofA) analyst Justin Post reaffirmed a 'Buy' rating with a target of $225, indicating a 20% upside, supported by Google's strong search market position despite rising competition from AI platforms like ChatGPT [3] - JPMorgan lowered its price target from $232 to $220 due to weaker-than-expected revenue and operating income, while Morgan Stanley reduced its target from $215 to $210, citing challenges in proving long-term revenue growth [9] - Goldman Sachs raised its price target to $220, maintaining a 'Buy' rating, highlighting strong growth in Search and YouTube, while Raymond James revised its target from $190 to $205, acknowledging similar strengths but expressing concerns over Google Cloud's performance [10] Financial Performance - In Q4 2024, Alphabet reported $96.5 billion in revenue, slightly missing analyst expectations of $96.67 billion, but exceeded EPS forecasts with $2.15, surpassing the expected $2.13 [8] Competitive Landscape - Despite competition from AI platforms, Google's search engine continues to show healthy growth in traffic and revenue, with ChatGPT not materially impacting Google search traffic or share [4] - BofA identified potential risks in 2025, including pressure on search traffic from emerging AI competitors and possible negative implications from court rulings in the U.S. and EU [5] AI Investments - Alphabet plans to spend $75 billion on capital expenditures in 2024, with a significant portion allocated to enhancing AI capabilities and infrastructure, indicating AI as a major long-term growth catalyst [11]