Analyst Says Alphabet (GOOG) Can Surge to Over $300

Core Viewpoint - Analysts believe Alphabet Inc (NASDAQ:GOOG) is undervalued and well-positioned for growth following a recent court ruling that allows the company to retain its Chrome business [1][2]. Group 1: Revenue Growth and Market Position - Alphabet has maintained double-digit search revenue growth, averaging 11% to 13% over the past two years, which is expected to continue due to rising quality of leads from Google [1]. - The company is leveraging Gen AI to enhance ad targeting and selection, improving the overall search marketplace [1]. - Concerns regarding AI-related threats to Google search are considered overstated, as users find it easier to switch to Google's Gemini rather than adopting a new model [2]. Group 2: Additional Revenue Streams - YouTube revenue and Google Cloud revenue are both accelerating, contributing to the overall growth potential of the company [1]. - Analysts anticipate that Alphabet will begin placing ads in AI search results, which will help sustain its core advertising business despite a decline in traditional search [2]. Group 3: Valuation and Future Earnings - Analysts suggest a valuation multiple of 25 on next year's earnings could lead to a stock price target between $275 and $325, with a likely target around $300 [1].